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HomeMy WebLinkAboutFinancial Assistance Award Denali Commission 2006DENALI COMMISSION ...Project Number 165-05,Amendment 5FinancialAssistance Bulk Fuel Consolidation Upgrades &Award Project Title Power Generation---2005 &Beyond DENALI COMMISSION Performance Period Feb.1,2005 to Dec.31,2008 510 "L"Street,Suite 410 Anchorage,Alaska 99501 Authorizing Resolution |05-09,06-06,06-07,06-21 (907)271-1414 (phone) (907)271-1415 (fax)Seciplent Organization &Addresswww.denali.gov tate o aska :Alaska Energy Authority Authority CFDA Number 813 W.Northern Lights 112 Stat 1854 90.100 Anchorage,AK 99503 Phone:(907)269-3000DenaliCommissionFinanceFax:(907)269-3044OfficerCertification Recipient DUNS #05-407-2608 TIN#92-6001185 Cost Share Distribution Table Cumulative Denali Other Current Obligations Obligations Commission Contributors Totals FY06 TAPL $2,005,101.00 New Funding $6,972,211.00 $6,972,211.00 FY06 RUS $4,967,110.00 Funding From Prior : Periods $35,332,655.00 $1,100,000.00 $36,432,655.00 Total New Funding $6,972,211.00 |Funding Totals $42,304,866.00 $1,100,000.00 $43,404,866.00 This Financial Assistance Award approved by the Federal Co-Chair of the Denali Commission is issued in triplicate and constitutes an obligation of federal funding.By signing the three documents,the Recipient agrees to comply with the Award provisions indicated below and attached.Upon acceptance by the Recipient,two signed Award documents shall be returned to the Federal Co-Chair of the Denali Commission and the Recipient shall retain the third document.If not signed and returned without modification by the Recipient within 30 days of receipt,the Federal Co-Chair may unilaterally terminate this Award.[X]Special Award Conditions and Attachments [_]Line Item Budget >OMB Circular A-133,Audits of States,Local Governments,and Non-Profit Organizations (http://www.whitehouse.gov/omb/circulars/a133/a133.html) Administrative Requirements (check one) (]OMB Circular A-102,Grants and Cooperative Agreements with State and Local Governments (http://www.whitehouse.gov/omb/circulars/al102/a102.html) [_]2 CFR Part 215,Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education,Hospitals,and Other Nonprofit Organizations (OMB Circular A-110) (http://www.access.gpo.gov/nara/cfr/waisidx 05/2cfr215_05.html) Cost Principles (check one) (J OMB Circular A-87,Cost Principles for State,Local and Indian Tribal Governments (www.whitehouse.gov/omb/circulars/aQ87/a087-all.html)[-]OMB Circular A-122,Cost Principles for Nonprofit Organizations (www.whitehouse.gov/omb/circulars/al22/a122.html) (J OMB Circular A-21,Cost Principles for Educational Institutions (http://www.whitehouse.gov/omb/circulars/a02 1/a021.-html) []48 CFR 31.2,Contracts with Commercial Organizations Signature of Authorized Official -Denali Commission Typed Name and Title Date George J.Cannelos,Federal Co-Chair Signature of Authorized Official -AIDEA/AEA Typed Name and Title Date Ronald W.Miller,Executive Director Rev:12/2005 Award Conditions to the Financial Assistance Award Between the Denali Commission and Alaska Energy Authority For Bulk Fuel Consolidation Upgrades &Power Generation-2005 &Beyond Award No.165-05,Amendment 5September2006tfDeletedApt All changes to the award conditions are noted below. 1.Scope of Work A list of additional authorized projects,and authorized funding levels,is appended,and made part of this award.An additional $2,005,101 in TAPL funds and $4,967,110 in RUS high cost energy funds for a total of $6,972,211 new funding is provided.New total funding amount available under this award is $42,304,866.00. 2.Award Performance Period The Award performance period is not changed by this amendment,and remains February 1,2005 through December 31,2008.This is the period during which Award recipients can incur obligations or costs against this Award.Due to the nature of this follow-on award,costs incurred after December 8,2004 but prior to February 1,2005 for elements which have been carried forward from a previous award are allowable under this award. 3.Budget and Program Revisions This amendment includes funding from the Trans-Alaska Pipeline Liability Interest (TAPL)that can only be used for bulk fuel upgrade projects.The projects so funded are shown on the attached list of projects and funding.If there is an excess of funds at the completion of the Pelican and Seldovia bulk fuel projects the TAPL portion of the funding can only be applied to other bulk fuel projects,and with approval of the Denali Commission. There are no other changes to the original Financial Assistance Award,as amended. AEA Award 165-05 Amendment 5 Award Distribution September 2006 Denali Commission Funding Project No.|Community Project Type Project Phase Project Funding |Source 340238 -'|Pelican IBFU |Phase 3 construction |605,101.00 |FYO6 TAPL 340220 -Seldovia BFU Phase 3 construction completion 1,400,000.00 FY06 TAPL 340238 |Pelican BFU Phase 3 construction (605,101.00):FY06 Base 350261 =|Akiachak RPSU Phase 3 construction (1,900,000.00)|FY06 Base 350280 |Unalakleet BFU Phase 3 construction (1,322,436.89):!FY06 Base 350270 ..King Cove RPSU/diesel Phase 3 partial construction 2,769,136.89 _FYO6 Base 340254 ©.Ruby BFU Phase 2 final design 50,000.00 _FY06 Base 403005 Statewide Other 2006 ECR construction .950,000.00 FY06 Base sub total new funding due 3%1,946,700.00 380002 Administrative funding 58,401.00 |FY06 Base Total New TAPL Funding 2,005,101.00 350264 ..Diomede RPSU Phase 3 construction 1,600,000.00 FYO06 RUS 350261 =|Akiachak RPSU Phase 3 construction 1,900,000.00 |FYO6 RUS 350280 /|Unalakleet BFU Phase 3 construction 1,322,436.89 |FY06 RUS sub total RUS due 3%admin 4,822,436.89 380002 Administrative funding 144,673.11 |FY06 RUS Total RUS Funding 4,967,110.00 GRAND TOTAL ALL FUNDING 6,972,211.00 AEA Award 165-05 Amendment 5 Award Distribution September 2006 Denali Commission Funding Project No.|Community Project Type Project Phase Project Funding |Source 340238 Pelican BFU Phase 3 construction 605,101.00 |FYO6 TAPL 340220 .Seldovia.BFU Phase 3 construction completion 1,400,000.00.FYO6 TAPL 340238 |Pelican BFU Phase 3 construction (605,101.00)|FY06 Base 350261 {Akiachak RPSU Phase 3 construction (1,900,000.00)|FY06 Base 350280 /Unalakleet BFU Phase 3 construction (1,322,436.89)|FY06 Base 350270...King Cove RPSU/diesel Phase 3 partial construction 2,769,136.89 FY06 Base 340254"Ruby BFU Phase 2 final design , 50,000.00 FY06 Base 403005...Statewide Other 2006 ECR construction |950,000.00 :FY06 Base sub total new funding due 3%1,946,700.00 380002 Administrative funding 58,401.00 |FYO6 Base Total New TAPL Funding 2,005,101.00 350264. Diomede RPSU Phase 3 construction ©""4,600,000.00 FYO6 RUS 350261 [Akiachak RPSU |Phase 3 construction __1,900,000.00 [FY06 RUS 350280 =/|Unalakleet BFU Phase 3 construction 1,322,436.89 |FYO6 RUS sub total RUS due 3%admin 4,822,436.89 380002 Administrative funding 144,673.11 |FYO06 RUS Total RUS Funding 4,967,110.00 GRAND TOTAL ALL FUNDING $ 6,972,211.00 © CO Page 1 of 1 Mike Harper From:Kathy Prentki [KPrentki@denali.gov] Sent:Thursday,April 13,2006 1:11 PM To:Mike Harper;Chris Mello Ce:Bryan Carey;Amy McCollum;Ronald Brown Subject:new funding amendment I'm working on the amendment to increase your funding for Unalakleet by $2,368,250,plus funding the rest of the projects !have available funding for (energy and water appropriations).|should have this to you next week.IsthisassuranceenoughforyoutoissuethenoticeofintenttoawardUnalakleet?1 still do not have RUS funding,nor any idea of when |might get it.Here are the other projects |am planning to fund now. Seldovia BFU construction phase 1-pipelines and dispensers 1 536,000 Akiachak RPSU final design/construction 957,000 Port Lions BFU final design/construction $15,000 Chitina RPSU final desien . 123,600 However,these are the projects we planned to fund under RUS funding. Diomede RPSU construction 545,000 Hoonah BFU CDR and small scale retrofit at powerhouse *00,250 Chignik Bay RPSU final design 193,600 Yakutat RPSU final design 350,200 Gustavus RPSU construction (powerhouse to go with Hydro) . 1,854,000 King Cove Hydro final design 206,000 Are you okay with holding off on these projects until we get the RUS funding?Sometimes May or later before we can get it. Let me know so |can tweak the project funding list if necessary. Thanks,Kathy 4/13/2006 FB4.1 Project Database System Page 1 of 1 Home Awards Projects Indicators Admin ( j 4 >Search'>Details >Financial ¥Reporting Recipient Reports |Reporting Schedule Wore MAP [HELP |LOGOUT _Progress Report Submission for Alaska Energy Authority Project #380002 Statewide:Denali Commission Projects Administrative Support ow(_Reporting Period Funding Expenditures +)Moestanes C Narrative )Avlachrnents This section includes the cumulative expenditures for the project,from all sources.«?> Action Required :Update to reflect the cumulative expenditures as of the end of the reporting period. Total Last Reported To Date Funding. Denali Commission Expenditures For Award 0048-DC-2002-$1,992,743.39 $ 1 $2,468,439 Denali Commission Expenditures For Award 0078-DC-2002-$22,749.17 $ 129 $77,353 Denali Commission Expenditures For Award 0085-DC-2003-$93,509.42 $ 12 a _$159,000 Denali Commission Expenditures For Award 0097-DC-2003-$165,276.71 $ Denali Commission Expenditures For Award 165-05 $11,180.44 $680,186 Other Project Funding Expenditures $0.00 $$0 Total Expenditures $2,285,459.13 $0.00 $3,923,940 Note -clicking next,back or using the above navigation panel will save this data.Step 3 of 7 [Back ][Next ] User:rgarrett (Recipient)|User Organization:Alaska Energy Authority DENALI COMMISSION 510 'L'Street,Suite 410,Anchorage,Alaska 99501 907-271-1414 Fax 907-271-1415 Toll Free 888-480-4321 Contact System Administrator http://www.denali.gov/dcepdb/index.cfm?fuseA ction=WizardExpenditures.ShowWizardEx...7/27/2006 AEA Award 165-05 Amendment 4 Award Distribution August 2006 Project Project Project No.|Community Project Type |Manager Project Phase Funding 350279 |Hoonah RPSU David Phase 1 CDR $200,000.00 350280 |Unalakleet RPSU/wind Kris Phase 1 CDR $75,000.00 350276 =|Akiak RPSU Kris Phase 1 CDR $95,000.00 350277 _|Igiugig RPSU Fin Phase 1 CDR $95,000.00 350278 |Kwethluk RPSU Kris Phase 1 CDR $95,000.00 350275 /Akutan Other/distribution |Lenny Phase 1 CDR $95,000.00 350260 |Chignik Bay RPSU Fin Phase 2 Final Design $120,000.00 350265 |Yakutat RPSU Kris Phase 2 Final Design $340,000.00 407008 _|King Cove Other/hydro Bryan Phase 2 Final Design $200,000.00 350273 |Gustavus RPSU David Phase 3 construction $1,753,837.86 350267 =|Pelican RPSU/hydro David Phase 3 construction $2,600,000.00 340238 =|Pelican BFU David Phase 3 construction $1,200,000.00 350270 (King Cove RPSU/diesel Bryan Phase 3 partial construction $233,298.06 340232 (King Cove BFU Bryan Phase 3 construction $1,200,000.00 340139 |Hoonah BFU David Phase 1 CDR $95,000.00 Wood-fired boiler,partial 402012 [Craig Biomass David construction $300,000.00 Total Project Allocation:|$8,697,135.92 AEA Award 165-05 Amendment 4 Award Distribution August 2006 Current Budget Total $200,000.00 $75,000.00 $95,000.00 $95,000.00 $95,000.00 $120,000.00 $240,000.00 $427,000.00 $234,000.00 $1 923,344.67 $2,774,213.02 $1,475,000.00 $508,003.20 $1,340,000.00 $150,536.39 $502,669.50 Project Number Denali Commission Accounting Code Financial Assistance Award DENALI COMMISSION 510 "L"Street,Suite 410 Anchorage,Alaska 99501 Total Commission Funding (QOD 27s Line Item BudgetRecipientName&Address State of Alaska Conn onAlaskaEnergyAuthority 813 West Northern Lights Estimated Staff 252,000 Anchorage,AK 99503 Costs Loan Amount $3,700,000 Phone (907)269-3000 Fax (907)269-3044 Totals $3,952,000 Authority Project Title Award Performance Period 112 Stat 1854 Power Project Fund Capitalization From:5/1/2002 To:4/30/2007 This Financial Assistance Award approved by the Federal Co-Chair of the Denali Commission is issued in triplicate and constitutes an obligation of federal funding.By signing the three documents,the Recipient agrees to comply with the Award provisions indicated below and attached.Upon acceptance by the Recipient,two signed Award documents shall be returned to the Federal Co-Chair of the Denali Commission and the Recipient shall retain the third document.If not signed and returned without modification by the Recipient within 30 days of receipt,the Federal Co-Chair may unilaterally terminate this Award. [_]EDA Standard Terms and Conditions Public Works and Implementations Construction Components,dated 3/99{XJ Special Award Conditions and Attachments []Line Item Budget [>]15 CFR 24,Uniform Admin Requirements for Grants/Cooperative Agreements to State and Local Governments (www.access.gpo.gov/nara/cft/waisidx 99/15cfr24_99.html) &OMB Circular A-87,Cost Principles for State and Local Governments and Indian Tribal Governments (www.whitehouse.gov/OMB/circulars/a087/a087-all.html) IX]OMB Circular A-133,Audits of States,Local Governments and Indian Tribal Governments (www.whitehouse.gov/OMB/circulars/al33/a133.html) [_]15 CFR,Part 14,Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education,Hospitals,Other Nonprofit,and Commercial Organizations (www.access.gpo.gov/nara/cfr/waisidx_99/1Scfrl4_99.html) [_]OMB Circular A-122,Cost Principles for Nonprofit Organizations (www.whitehouse.gov/OMB/circulars/al22/a122.html)J OMB Circular A-21,Cost Principles for Educational Institutions (www.whitehouse.gov/OMB/circulars/a02 1/a021.html) [_]EDA Standard Terms and Conditions Capacity Building Programs[_]Department of Commerce Financial Assistance Standard Terms and Conditions,dated 10/98 Signature of Authorized Official -Denali Commission Typed Name and Title Date Jeffrey B.Staser,Federal Co-Chair Signature of Authorized Official Typed Name and Title Date Robert Poe,Jr.,Executive Director Rev:01/01 Financial Assistance Project Number 0148-DC-2005-11 oh oe Middle Kuskokwim Regional EnergyAwardProjectTitleProject(MKREP)ay DENALI COMMISSION Performance Period 12/1/2004 to 3/31/2006 510 "L"Street,Suite 410 Anchorage,Alaska 99501 Authorizing Resolution |05-01 Mea as (907)271-1414 (phone)Recipient Organization &Address(907)271-1415 (fax)5 F Aleskwww.denali.gov tate o aska .Alaska Energy Authority Authority CFDA Number 813 W.Northern Lights 112 Stat 1854 90.100 Anchorage,AK 99503 .-.Phone:(907)269-3000DenaliCommissionFinanceFax:(907)269-3044OfficerCertificationRecipientDUNS#05-407-2608 Cost Share Distribution Table onAccountingCodeDenaliCommissionOtherContributors4{Tota® 95670000 FY0S5 $11,600,000.00 $11,600,000.00 $0.00 $0.00 $0.00 $0.00 Total $11,600,000.00 we:00 ' AIK600,000.00ThisFinancialAssistanceAwardapprovedbytheFederalCo-Chair of the Denali ComThissif . is issued in triplicate andconstitutesanobligationoffederalfunding.By signing the three documents,the Recip ept agrees to comply with the Awardprovisionsindicatedbelowandattached.Upon acceptance by the Recipient,two signgeél!Award documents shall be returned to the Federal Co-Chair of the Denali Commission and the Recipient shall retain the third document.If not signed and returned without modification by the Recipie :p30 days of receipt,the Federal Co-Chair may unilaterally terminate this Award. (J Line Item Budget (J OMB Circular A-13 pe $al Governments,and Non-Profit Organizations (http://www.whitehouse.cov/ombieis ars/al02 al102.html)CJ OMB Circular A-110,Uniform Administraiath e>Requirements for Grants and Agreements with Institutions of Higher (http:www.whitehouse.gov/omb/circulars/a1 10/a110.html) Cost Principles (check one) (OMB Circular A-87,Cost Principles for State,Local and Indian Tribal Governments (www.whitehouse.gov/omb/circulars/a087/a087-all.html)([]OMB Circular A-122,Cost Principles for Nonprofit Organizations (www.whitehouse.gov/omb/circulars/al22/al22.html) [J]OMB Circular A-21,Cost Principles for Educational Institutions (http://www.whitehouse.gov/omb/circulars/a02 1/a021.html)C]48 CFR 31.2,Contracts with Commercial Organizations Signature of Authorized Official -Denali Commission Typed Name and Title _..Date Jeffrey B.Staser,Federal Co-Chair Signature of Authorized Official -Recipient Organization Typed Name and Title Date Ronald W.Miller,Executive Director eae AIONte Rev:12/2003 Award Conditions to the Financial Assistance Award Between the Denali Commission and Alaska Energy Authority For the Middle Kuskokwim Regional Energy Project Project No.0148-DC-2005-T, December 2004 1.Scope of Work The scope of work under this Financial Assistance Award (the "Agreement”)is to plan and construct the Middle Kuskokwim Regional Energy Project (MKREP)for the communities of Aniak,Chuathbaluk,Crooked Creek,Red Devil,Sleetmute,Stony River,and Takotna.All funds provided may be used for any aspect of these projects,but may not be transferred to projects not identified as part of the MKREP.The intent is not to set aside a specific sum of Commission funding to a particular community,but rather that the MKREP be completed within the available funding. AEA may make subgrants to Alaska communities or local utilities to construct the projects, and AEA may act as the subgrantees'agent to plan,design,and construct the projects. All Commission funding is intended for use for the scope of work identified in the Award document only.In the event there is a balance of funding remaining after the full scope of work has been completed,the Denali Commission shall determine how the excess funds will be allocated. The following milestones are identified as the major steps to be completed as part of the project."Planned”dates for the first milestone are included here.As part of each progress report,recipients shall update the progress toward meeting these milestones (see section 7, Reporting). --INSERT MILESTONE CHART FROM DATABASE-- 3.Award Performance Period The Award performance period is December 1,2004 through June 30,2006.This is the period during which Award recipients can incur obligations or costs against this Award.Due to the nature of this funding completion award,costs incurred prior to December 1,2004 for elements which have been carried forward from a previous award are allowable under this award. 4.Direct and Indirect Costs The cost principles of OMB A-87 are applicable to this Award.The direct cost of AEA personnel time devoted to and identified on their timesheets for the performance of the award,i.e.plan and construct the projects under section 1 of this award,are allowable.In addition,up to 3%of the total costs under this award are allowable for the direct cost of AEA personnel time devoted to and identified on their timesheets for administration of the award. N x ' +, P Roman,14 pt,Bold,Italic,Border:: (No border) :{Deleted:insert project #} (foro Font:Times New {Deleted:}}-{Formatted:Bullets and Numbering } as |Award Conditions,Project No.,0148-DC-2005-IlL =st-st-i'iti'"'liCCS*'Page2of5___-{Heleted:0136-DC-2004-122AlaskaEnergyAuthority:MKREP December 2004 {Formatted:Font:10 pt,Bold LALAEA direct personnel costs for grant administration exceeding the 3%limit plus indirect costs will be considered a matching contribution. 5.Budget and Program Revisions The OMB Administrative Circular A-102 applies to this Award.The Administrative Circular requires that AEA will inform the Commission in writing (e-mail,letter,or report)at the earliest possible date of any unanticipated project cost overrun,project schedule delays, or changes in the project scope or changed site conditions. Written request by letter from the AEA Project Manager to the Commission Program Manager for concurrence is necessary for budget and program revisions where the change would result in the need for additional Commission funds. 6.Payments Payments under this Award will be made through the U.S.Department of Treasury's Automated Standard Application for Payment (ASAP)system.The ASAP system is the Commission's mechanism for requesting and delivering Federal funds to Award recipients. Your organization must be registered with the ASAP program in order to make draw downs. Please contact the Commission's Program Manager or Finance Manager for further information about registering with the ASAP program.Payments shall be made in accordance with OMB Administrative Circular A-102. 7.Reporting Three forms of project reporting are required under this Award,listed below.AEA shall submit reports using the Denali Commission's on-line Project Database System,available at www.denali.gov.If there are technical limitations which may prevent the recipient from meeting this requirement,please contact the Program Manager listed in this agreement. a.Progress Reports shall be submitted on a quarterly basis.The next reporting period is January 1,2005 -March 31,2005,and each quarter thereafter.Reports are due within 30 days of the end of the reporting period.Progress reports shall include the following: i.Total project funding,including both Denali Commission funding and other project funding sources. ii.The total project expenditures for the project as of the end of the reporting period, including both Denali Commission and Other funding sources. iii.|Updated schedule and milestone information as identified in the Scope of Work iv.Narrative summary of the project status and accomplishments to date which addresses the following questions:is the project on schedule,is the project on budget,and what actions are planned to address any project problems. v.Construction Projects Photographic documentation of project progress shall be provided with the progress reports for active construction projects.The photo documentation shall include a minimum of three,dated photos per reporting period such that a complete record of the construction is maintained over time, |Award Conditions,Project No.,.0148-DC-2005-I1 Page3of5__. Alaska Energy Authority:MKREP December 2004 from "before,”showing the situation before the start of construction,to "during” showing work proceeding on the project,and "after”to show the finished project. Photos shall be provided in a digital format as part of the on-line report.A short description of the activity and names of those in the photos shall also be provided. vi.Non-Construction Projects For minor repair and renovation projects or other non-construction elements,dated pictures should be provided of before and after, or photos that are representative of the funded activity,to the extent possible. Photos shall be provided in a digital format as part of the on-line report.A shortdescriptionoftheactivityandnamesofthoseinthephotosshallalsobeprovided.. b.Wage and Residency Reports shall be submitted on an annual basis using the Denali Commission On-line Project Database.The reporting period is January 1 -December 31*of each year.Reports are due within 30 days of the end of the reporting period.The Wage and Residency Report shall include the following information by for each construction project i.Total number of Local Residents employed during the year,and their total payroll eamings. ii.|Total number of Non-Local Alaska Residents employed during the year,and their total payroll earnings. iii.Total number of Non-Alaska Residents employed during the year,and their total payroll earnings. c.Federal Single Audits shall be submitted annually,when required.In accordance with OMB Circular A-133,which requires [subpart 200]""Non-Federal entities that expend $500,000 or more in a year in Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part.[subpart 205] The determination of when an award is expended should be based on when the activity related to the award occurs.” Recipients shall also submit single audits to the Federal Clearinghouse designated by OMB.Information can be found on the following web-site: http://harvester.census.gov/sac/ 8 Project Close-Out The project close-out shall be completed within 90 days of the end of the Award performance period or within 90 days of the completion of the project,whichever is earlier.Since the MKREP has received funding under multiple Denali Commission Awards,only one project close-out report shall be submitted that includes the entire project.Recipients must also draw down any remaining funds for expenditures incurred under this award during this 90-day period. The Project Close-out report shall be submitted on-line through the Denali Commission's on- line Project Database System,available at www.denali.gov.The project close out will require the recipient to submit the following information: -{teleted:0136-DC-2004.122-{Fprmatted:Font:10 pt,Bold {|Comment:Josh mentioned this.moming we have clarified the resolution for digital photos?That should go heré too. |Award Conditions,Project No..,0148-DC-2005-II Alaska Energy Authority;MKREP a.Final data for each item listed in paragraph 6(a)"Progress Reports” b.Final project expenditures itemized by the following categories:planning &design; materials &equipment;freight;labor;project administration/overhead and other expenses.' c.Acknowledgement of support:For all construction projects,the Award recipient shall display a sign that acknowledges the Government's support for the project(s) developed under this Award.The Commission will provide an appropriate sign.The Award recipient must request an indoor and/or an outdoor sign from the Commission office.Pickup or delivery of the sign can be arranged at that time. 9.Public Policy Laws and Assurances Award Recipients are required to comply with the public policy laws and assurances on Standard Forms SF 424b (non-construction projects)or SF 424d (construction projects). This form must also be signed by a certifying official of the organization.Some of the laws are highlighted below for your reference. To the maximum extent practicable,considering applicable laws,Funding Recipients shall accomplish the project contemplated by the Award using local Alaska firms and labor. No portion of this award may be used for lobbying or propaganda purposes as prohibited by 18 U.S.C.Section 1913 or Section 607(a)of Public Law 96-74. Project level environmental reviews in accordance with the National Environmental Policy Act (NEPA)and the National Historic Preservation Act (NHPA)are required for each project undertaken with Denali Commission funds. 10.Non-Compliance with Award Conditions Recipients not in compliance with the terms and conditions of this Financial Assistance Award will be notified by the Denali Commission.The Denali Commission will work with the recipient to identify the steps necessary to bring them back into compliance,and will establish an appropriate time frame for the corrections to be made.Ifthe corrections have not been made by the deadline,the Denali Commission reserves the right to either suspend or unilaterally terminate the Financial Assistance Award for non-performance. 11.Program Manager,Financial Manager &Other Contact Information Denali Commission Ms.Kathleen Prentki 510 "L”Street,Suite 410 Anchorage,AK 99501 Voice -(907)271-1414 Fax -(907)271-1415 Mr.Chris Mello 813 W.Northern Lights Blvd. Anchorage,AK 99503 Voice -(907)269-4649 Fax -(907)269-3044 Page4of5 _ December 2004 Alaska Energy Authority + {eleted:0136-DC-2004-122 J'{Pbrmattea:Font:10 pt,Bold B) mo -{Formatted Tabie |Award Conditions,Project No.,,0148-DC-2005-11 Alaska Energy Authority:MKREP December 2004Page5o0f5__.--{tfeleted:0136-DC-2004-122 {Formatted:Font:10 pt,Bold e-mail:kprentki@denali.gov e-mail:cmello@aidea.org Ms.Michelle O'Leary 510 "L”Street,Suite 410 Anchorage,AK 99501 Voice -(907)271-1767 Fax -(907)271-1415 e-mail:moleary@denali.gov Ms.Amy McCollum 813 W.Northern Lights Blvd. Anchorage,AK 99503 Voice -(907)269-4629 Fax -(907)269-3044 e-mail:amccollum@aidea.org 11.Denali Commission Policies AEA agrees to comply with the Commission's resolution 01-15 resolution on sustainability, the Commission's sustainability criteria,private enterprise policy,project prioritization policy,pipelines and dispensers policy,and project design capacity policy,and cost containment policy,and investment policy. ...Project Number 0048-DC-2002-I11 Amendment No.12FinancialAssistance Bulk Fuel Consolidation Upgrades &Award Project Title Power Generation DENALI COMMISSION Performance Period February 1,2002 -January 31,2005 510 "L"Street,Suite 410 Anchorage,Alaska 99501 Authorizing Resolution |04-01 (907)271-1414 (phone).e as (907)271-1415 (fax)Recipient Organization &Address State of Alaskawww.denali.gov tte .oakAlaskaEnergyAuthority Authority CFDA Number 813 W.Northern Lights 112 Stat 1854 90.100 Anchorage,AK 99503 7 --Phone:(907)269-3000DenaliCommissionFinanceCFax:(907)269-3044OfficerCertification¢&Recipient DUNS #05-407-2608 Cost Share Distribution Table Cumulative Denali Other Current Obligations Obligations Commission Contributors Totals FY04 Base funding Acct.Code 95670000]$5,259,791.00 Current Funding $-7,291,332.00 $7,291,332.00 Funding From Prior TAPL $2,031,541.00 Periods $92,433,162.56|$28,252,278.00]$120,685,440.56 Total Current Funding $ 7,291,332.00 Funding Totals $99,724,494.56|$28,252,278.00|$127,976,772.56 This Financial Assistance Award approved by the Federal Co-Chair of the Denali Commission is issued in triplicate and constitutes an obligation of federal funding.By signing the three documents,the Recipient agrees to comply with the Award provisions indicated below and attached.Upon acceptance by the Recipient,two signed Award documents shall be returned to the Federal Co-Chair of the Denali Commission and the Recipient shall retain the third document.If not signed and returned without modification by the Recipient within 30 days of receipt,the Federal Co-Chair may unilaterally terminate this Award.&]Special Award Conditions and Attachments CL]Line Item Budget []OMB Circular A-133,Audits of States,Local Governments and Indian Tribal Governments (http://www.whitehouse.gov/omb/circulars/al33/a133.html) Administrative Requirements (check one)J OMB Circular A-102,Grants and Cooperative Agreements with State and Local Governments (http://www.whitehouse.gov/omb/circulars/al02/a102.html) [1]OMB Circular A-110,Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education,Hospitals,and Other Nonprofit,and Commercial Organizations (http://www.whitehouse.gov/omb/circulars/al 10/al 10.html) Cost Principles (check one) [<]OMB Circular A-87,Cost Principles for State,Local and Indian Tribal Governments (www.whitehouse.gov/omb/circulars/a087/a087-all._html)(LJ OMB Circular A-122,Cost Principles for Nonprofit Organizations (www.whitehouse.gov/omb/circulars/al22/a122.html) (-]OMB Circular A-21,Cost Principles for Educational Institutions (http://www.whitehouse.gov/omb/circulars/a02 1/a02 1.htm!)C]48 CFR 31.2,Contracts with Commercial Organizations Signature of Authorized Official -Denali Commission Typed Name and Title Date COVC._[¢x Jeffrey B.Staser,Federal Co-Chair of\S/oy Signattyre of Aut?qrized Official\-Alaska Energy Authority |Typed Name and Titte Date &/Ronald W.Miller,Executive Director ar Sol i .//{ Rev:12/2003 Funding List Project No.0048-DC-2002-I1,Amendment 12 Financial Assistance Award Between Denali Commission and AEA For Statewide Bulk Fuel and Energy Program February 2004 Funding VILLAGE PROJECT FUNDING [Source Statewide*Energy Cost Reduction RFP $1,800,000 |base /'G0,d€O King Cove BFU,Start CDR design,business plan $ °75,000 |TAPL 29000PilotPointBFU,Start CDR design,business plan |$75,000 |TAPL 1,14 Hydaburg BFU,Start CDR design,business plan $75,000 {TAPL /08 arrKasaanBFU,Start CDR design,business plan _|$75,000 ITAPL , Coffman Cove|BFU,Start CDR design,business plan $75,000 jTAPL Thorne Bay _{BFU,Start CDR design,business plan $75,000 |TAPL Klawock BFU,Start CDR design,business plan $75,000 |TAPL Pelican BFU,Start CDR design,business plan $75,000 |TAPL lliamna BFU,Start CDR design,business plan $75,000 ;TAPL Gustavus BFU,Start CDR design,business plan $75,000 {TAPL Elfin Cove BFU,Start CDR design,business plan $75,000 |TAPL Kipnuk BFU,Start CDR design,business plan $75,000 ;TAPL Tuluksak BFU,Start CDR design,business plan $75,000 |TAPL Kwethluk**BFU,Start CDR design,business plan $100,000 |TAPL Oscarville BFU,Start CDR design,business plan $75,000 |TAPL Napakiak BFU,Start CDR design,business plan $75,000 |TAPL Akutan BFU,Construction ___|$_806,541 |TAPL Akutan BFU,Construction :$393,459 ibase Other Energy,upgrade controls,replace Akutan valves on existing hydropower system $150,000 |base Newhalen BFU,Construction $1,200,000 jbase Nanwalek BFU,Construction $700,000 jbase Nikolski RPSU,Construction $761,135 |base Denali Commission Projects Admin Statewide Support at 3.5%of award $255,197 Total Funding,This Award $7,291,332 | *Communities will be named when successful proposals are funded **Kwethluk is planned to be firm fixed price bid,so design is more detailed PROJECT LIST FEBRUARY 2004 45 Award Conditions to the Financial Assistance Award Between the Denali Commission and Alaska Energy Authority For Rural Bulk Fuel and Power System Upgrades 'Project No.0048-DC-2002-I1,Amendment 12 I.Scope of Work The scope of work under this Financial Assistance Award (the "Agreement”)is to plan and construct the projects listed on the attached "Approved Project List',as well as projects previously approved under the original project award and subsequent amendments one through eleven.Any surplus of funds (on one or more of the projects funded under this Agreement)may be used on other projects identified under this Agreement that may be experiencing a project shortfall.However,any change in project funding that exceeds +/- 10%of the original amount funded must be justified and approved in writing in accordance with paragraph 4.The intent is not to set aside a specific sum of Commission funding to a particular community,but rather that the projects on "Approved Project List”are completed successfully.TAPL money may be used only for Bulk Fuel projects. There are many issues such as facility location,project ownership,construction costs,and compliance with sustainability criteria that require resolution prior to proceeding with construction.If project issues cannot be resolved in a reasonable time frame,the Commission expects AEA to move down the priority list to projects that are ready to proceed to construction.It is expected that the Commission and AEA Project Officers will meet quarterly to review the progress of projects and collaboratively determine if reasonable progress is being made and what steps should be taken,if any,to deal with new developments encountered in the design and construction process. AEA will make subgrants to Alaska communities or local utilities to construct the projects, and AEA may act as the subgrantees'agent to plan,design,and construct the projects. All Commission funding is intended for use for the scope of work identified in the Award document only.In the event there is a balance of funding remaining after the full scope of work has been completed,the Denali Commission shall determine how the excess funds will be allocated. 2.Award Performance Period The Award performance period is February 1,2002 through January 31,2005 This is the period during which Award recipients can incur obligations or costs against this Award.Due to the nature of the continuation award,cost incurred prior to February 1,2002 for projects which have been carried forward from a previous award are allowable under this award. 3.Direct and Indirect Costs The cost principles of OMB A-87 are applicable to this Award.The direct cost of AEA personnel time devoted to and identified on their timesheets for the performance of the award,i.e.plan and construct the projects under section |of this award,are allowable.In addition,up to 3.5%of the total costs under this award are allowable for the direct cost of Award Conditions,Project No.Project No.0048-DC-2002-I1,Amendment 12 Page 2 of 5 Alaska Energy Authority February 2004 AEA personnel time devoted to and identified on their timesheets for administration of the award.AEA direct personnel costs for grant administration exceeding the 3.5%limit plus indirect costs will be considered a matching contribution. 4.Budget and Program Revisions The OMB Administrative Circular A-102 applies to this Award.Shifting of funding between project line items by AEA is allowed provided the change is within 10%(+/-)of the line item amount funded in this award,and there is no increase in the total funding provided by the Commission.The Commission Program Manager is to be notified on all revisions to the "Approved Project List”as part of the progress report under section 6.a.of this award. Written request by letter from the AEA Project Manager to the Commission Program Manager for concurrence is necessary for budget and program revisions where the change to an individual project budget exceeds the 10%(+/-)limit,or when projects are added or deleted or that would result in the need for additional Commission funds. 5.Payments Payments under this Award will be made through the U.S.Department of Treasury's Automated Standard Application for Payment (ASAP)system.The ASAP system is the Commission's mechanism for requesting and delivering Federal funds to Award recipients. Your organization must be registered with the ASAP program in order to make draw downs. Please contact the Commission's Program Manager or Finance Manager for further information about registering with the ASAP program.Payments shall be made in accordance with OMB Administrative Circular A-102. 6.Reporting Three forms of project reporting are required under this Award,listed below.AEA shall submit reports using the Denali Commission's on-line Project Database System,available at www.denali.gov.If there are technical limitations which may prevent the recipient from meeting this requirement,please contact the Program Manager listed in this agreement. a.Progress Reports shall be submitted on a quarterly basis.The next reporting period is January 1,2004 -March 31,2004,and each quarter thereafter.Reports are due within 30 days of the end of the reporting period.Progress reports shall include the following: i.Total project funding,including both Denali Commission funding and other project funding sources. ii.The total project expenditures for the project as of the end of the reporting period, including both Denali Commission and Other funding sources. iii.|Update schedule and milestone information as identified in the Scope of Work iv.Narrative summary of the project status and accomplishments to date,and address the following questions:is the project on schedule,is the project on budget,and what actions are planned to address any project problems. Award Conditions,Project No.Project No.0048-DC-2002-H,Amendment 12 Page 3 of 5 Alaska Energy Authority February 2004 v.Construction Projects Photographic documentation of project progress shall be provided with the progress reports for active construction projects.The photo documentation shall include a minimum of three,dated photos per reporting period such that a complete record of the construction is maintained over time, from "before,”showing the situation before the start of construction,to "during” showing work proceeding on the project,and "after”to show the finished project. Photos shall be provided in a digital format as part of the on-line report.A short description of the activity and names of those in the photos shall also be provided. vi.Non-Construction Projects For minor repair and renovation projects or other non-construction projects,dated pictures should be provided of before and after, or photos that are representative of the funded activity,to the extent possible. Photos shall be provided in a digital format as part of the on-line report.A short description of the activity and names of those in the photos shall also be provided. b.Wage and Residency Reports shall be submitted on an annual basis using the Denali Commission On-line Project Database.The reporting period is January 1*'-December 31°of each year.Reports are due within 30 days of the end of the reporting period.The Wage and Residency Report shall include the following information by for each construction project i.Total number of Local Residents employed during the year,and their total payroll earnings. ii.Total number of Non-Local Alaska Residents employed during the year,and their total payroll earnings. ili.Total number of Non-Alaska Residents employed during the year,and their total payroll earnings. c.Federal Single Audits shall be submitted annually,when required.In accordance with OMB Circular A-133,which requires [subpart 200]"Non-Federal entities that expend $500,000 or more in a year in Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part.[subpart 205] The determination of when an award is expended should be based on when the activity related to the award occurs.” Recipients shall also submit single audits to the Federal Clearinghouse designated by OMB.Information can be found on the following web-site: http://harvester.census.gov/sac/ 7.Project Close-Out The project close-out shall be completed within 90 days of the end of the Award performance period or within 90 days of the completion of the project,whichever is earlier.AEA shall submit project close-out reports for each project line-item funded as part of this award. Should an individual physical project receive funding under multiple Denali Commission Awards,only one project close-out report shall be submitted that includes the entire project. Award Conditions,Project No.Project No.0048-DC-2002-I1,Amendment 12 Page 4 of 5 Alaska Energy Authority February 2004 Recipients must also draw down any remaining funds for expenditures incurred under this award during this 90-day period. The Project Close-out report shall be submitted on-line through the Denali Commission's on- line Project Database System,available at www.denali.gov.The project close out will require the recipient to submit the following information: a.Final data for each item listed in paragraph 6(a)"Progress Reports” b.Final project expenditures itemized by the following categories:planning &design; materials &equipment;freight;labor;project administration/overhead and other expenses. c.Acknowledgement of support:For all construction projects,the Award recipient shall include an acknowledgement of the Government's support for the project(s)developed under this Award.The Award recipient shall display a sign that: i.Has the Denali Commission logo displayed on the upper right-hand quadrant; ii.States the following:"This project was financed by the Denali Commission and its partners (list the name of the funding partners)”; iii.|Shows the logo of each partner in the lower right-hand quadrant. The cost of this sign shall be paid out of the project funding received by the Award recipient from the Denali Commission.Final approval of signage material and placement of sign must be obtained from the Commission Project Manager. 8.Public Policy Laws and Assurances Award Recipients are required to comply with the public policy laws and assurances on Standard Forms SF 424b (non-construction projects)or SF 424d (construction projects). This form must also be signed by a certifying official of the organization.Some of the laws are highlighted below for your reference. To the maximum extent practicable,considering applicable laws,Funding Recipients shall accomplish the project contemplated by the Award using local Alaska firms and labor. No portion of this award may be used for lobbying or propaganda purposes as prohibited by 18 U.S.C.Section 1913 or Section 607(a)of Public Law 96-74. Project level environmental reviews in accordance with the National Environmental Policy Act (NEPA)and the National Historic Preservation Act (NHPA)are required for each project undertaken with Denali Commission funds. 9.Non-Compliance with Award Conditions Recipients not in compliance with the terms and conditions of this Financial Assistance Award will be notified by the Denali Commission.The Denali Commission will work with Award Conditions,Project No.Project No.0048-DC-2002-I1,Amendment 12 Page 5 of5AlaskaEnergyAuthorityFebruary2004 the recipient to identify the steps necessary to bring them back into compliance,and willestablishanappropriatetimeframeforthecorrectionstobemade.If the corrections have not been made by the deadline,the Denali Commission reserves the ri ght to either suspend orunilaterallyterminatetheFinancialAssistanceAwardfornon-performance. 10.Program Manager,Financial Manager &Other Contact Information Denali Commission Alaska Energy AuthorityMs.Kathleen Prentki 510 "L”Street,Suite 410 Anchorage,AK 99501 Voice -(907)271-1414 Fax -(907)271-1415 e-mail:kprentki@denali.gov Mr.Chris Mello 813 W.Northern Lights Blvd. Anchorage,AK 99503 Voice -(907)269-4649 Fax -(907)269-3044 e-mail:cmello @aidea.org_Ms.Michelle O'Leary 510 "L”Street,Suite 410 Anchorage,AK 99501 Voice -(907)271-1767 Fax -(907)271-1415 e-mail:moleary @denali.gov Ms.Amy McCollum 813 W.Northern Lights Blvd. Anchorage,AK 99503 Voice -(907)269-4629 Fax -(907)269-3044 e-mail:amccollum @aidea.org 11.Denali Commission Policies AEA agrees to comply with the Commission's resolution 01-15 resolution on sustainability,the Commission's sustainability criteria,private enterprise policy,project prioritizationpolicy,pipelines and dispensers policy,and project design capacity policy,and costcontainmentpolicy. [2 oy Project Number 0078-DC-2002-129 -Amendment | Financial Assistance -Award Project Title Power Project Fund Capitalization DENALI COMMISSION Performance Period June 1,2002 -April 30,2007 510 "L"Street,Suite 410 Recipient Name &Address Anchorage,Alaska 99501 (907)271-1414 (phone)State of Alaska (907)271-1415 (fax)Alaska Energy Authoritywww.denali.gov 813 W.Northern Lights Anchorage,AK 99503 Authority CFDA Number Phone:(907)269-3000 112 Stat 1854 90.100 Fax:(907)269-3044 Denali Commission Finance Wnts Recipient DUNS #05-407-2608 TIN#92-6001185OfficerCertification Cost Share Distribution Table Original Commission Accounting Code funding Funding Decrease Current Total Denali Commission Base Funding $1,879,358 -$166,043 $1,713,315 RUS Funding $1,143,975 -$743,056 $400,919 $0 $0 Total $3,023,333 -$909,100 $2,114,233 This Financial Assistance Award approved by the Federal Co-Chair of the Denali Commission is issued in triplicate and constitutes an obligation of federal funding.By signing the three documents,the Recipient agrees to comply with the Award provisions indicated below and attached.Upon acceptance by the Recipient,two signed Award documents shall be returned to the Federal Co-Chair of the Denali Commission and the Recipient shall retain the third document.If not signed and returned without modification by the Recipient within 30 days of receipt,the Federal Co-Chair may unilaterally terminate this Award.(]Special Award Conditions and Attachments[_]Line Item Budget (J OMB Circular A-133,Audits of States,Local Governments and Indian Tribal Governments (www.whitehouse.gov/OMB/circulars/a133/a133.html) Administrative Requirements (check one){<]15 CFR 24,Uniform Admin Requirements for Grants/Cooperative Agreements to State and Local Governments (www.access.gpo.gov/nara/cft/waisidx_99/15cfr24_99.html) []15 CFR,Part 14,Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education,Hospitals,Other Nonprofit,and Commercial Organizations (www.access.gpo.gov/nara/cfr/waisidx_99/15cfrl4_99.html) Cost Principles (check one)(<)OMB Circular A-87,Cost Principles for State and Local Governments and Indian Tribal Governments (www.whitehouse.gov/OMB/circulars/a087/a087-all.htm!)[]OMB Circular A-122,Cost Principles for Nonprofit Organizations (www.whitehouse.gov/OMB/circulars/al22/al22.html) CL]OMB Circular A-21,Cost Principles for Educational Institutions (www.whitehouse.gov/OMB/circulars/a02 1/a021.html)[J 48 CFR 31.2,Contracts with Commercial Organizations Signature of Akuthgriged Official -Denali Commission Typed Name and Title Jeffrey B.Staser,Federal Co-Chair Signature |ufhorized Officia¥-AlaSka Energy Authority |Typed Name and Title l Ronald W.Miller,Executive DirectorA S270 Award Conditions to Project No.0078-DC-2002-129,Amendment 1 August 2004 Recipient |Project loan with no mark-up {3%mark-up Emmonak Diesel AVEC Generator $113,428}$116,830.84 Hooper Bay Diesel AVEC Generator $75,770|$78,043.10 Mt.Village Diesel AVEC Generator $63,840}$65,755.20 Nunapachuk Diesel AVEC Generator $103,569|$106,676.07 AVEC Selawik Switchgear $116,408]$119,900.24 St.Mary's AVEC Switchgear $108,628]$111,886.84 AVEC Togiak Switchgear $139,771]$143,964.13 City of Atka |Atka Heat Recovery $161,207|$166,043.21|Non RUS TOTAL DELETION $882,621 $909,100 | Projects to be Deleted from Power Project Loan Fund Capitalization hand we ...Project Number 0048-DC-2002-11 Amendment No.14FinancialAssistance Award Project Title Bulk Fuel Consolidation Upgrades & Power Generation DENALI COMMISSION Performance Period February 1,2002 -January 31,2005 510 "L"Street,Suite 410 Anchorage,Alaska 99501 Authorizing Resolution |04-01 (907)271-1414 (phone)-:as (907)271-1415 (fax)Recipient Organization &Address State of Alaska Alaska Energy Authoritywww.denali.gov Authority CFDA Number 813 W.Northern Lights 112 Stat 1854 90.100 Anchorage,AK 99503 Denali Commission Finance Phone:(907)269-3000 nissio Fax:(907)269-3044OfficerCertificationCCERecipientDUNS#05-407-2608 TIN#92-6001185 Cost Share Distribution Table Cumulative Other Current Obligations Obligations Denali Commission}Contributors Totals FY04 Base funding |$(1,331,833.00)}Current Funding |$(222,915.00)$(222,915.00 FY04 TAPL $ 2,028,493.00 Funding From Prior FY04 EPA $(919,575.00)Periods $_106,958,515.62{$28.252,278.00}$135,210,793.62 Total Current Funding $__(222,915.00)|__Funding Totals |$__106,735,600.62|$28,252,278.00|$134,987,878.62 This Financia!Assistance Award approved by the Federal Co-Chair of the Denali Commission is issued in triplicate and constitutes an obligation of federal funding.By signing the three documents,the Recipient agrees to comply with the Award provisions indicated below and attached.Upon acceptance by the Recipient,two signed Award documents shall be returned to the Federal Co-Chair of the Denali Commission and the Recipient shall retain the third document.If not signed and returned without modification by the Recipient within 30 days of receipt,the Federal Co-Chair may unilaterally terminate this Award.{]Special Award Conditions and Attachments ["]Line Item Budget {]OMB Circular A-133,Audits of States,Local Governments and Indian Tribal Governments (http://www.whitehouse.gov/omb/circulars/al 33/a133.html) Administrative Requirements (check one) {J OMB Circular A-102,Grants and Cooperative Agreements with State and Local Governments (http://www.whitehouse.gov/omb/circulars/a102/a102.html)(J OMB Circular A-110,Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education,Hospitals,and Other Nonprofit,and Commercial Organizations (http://www.whitehouse.gov/omb/circulars/al 10/a110.html) Cost Principles (check one) {<]OMB Circular A-87,Cost Principles for State,Local and Indian Tribal Governments (www.whitehouse,gov/omb/circulars/a087/a087-all.html) {]OMB Circular A-122,Cost Principles for Nonprofit Organizations (www.whitehouse.gov/omb/circulars/a122/al22.html) (J OMB Circular A-21,Cost Principles for Educational Institutions (http://www.whitehouse.gov/omb/circulars/a02 1/a02 1 .html)CL]48 CFR 34.2,Contracts with Commercial Organizations Signature of Authprized Official -Denali Commission Typed Name and Title Date Jeffrey B.Staser,Federal Co-Chair B 26-20 y of Signature of Authorized Official Alaska Energy Authority |Typed Name and Title DateNeSereGolsXKfenRonaldW.Miller,Executive Director ¢as)|0 . Rev:12/2003 .Award Conditions to Project No.0097-DC-2003-111,Amendment 2 Financial Assistance Award Between Denali Commission and AEA for RUS Assistance to Rural Communities with Extremely High Energy Costs NEW FUNDING |REALLOCATED VILLAGE PROJECT ($)FUNDING ($)Funding Source Akiachak BFU,Construction $919,575 Project 48,amendment 14 Akiachak BFU,Construction $(669,575)|RUS 03 Takotna-Sterling Landing |BFU,Construction $75,000 |RUS 03 Larsen Bay BFU,Construction $450,000 |RUS 03 Tenakee Springs RPSU final design $144,575 |RUS 03 Project No.0048-DC-2002-la,Amendment 14 Award Conditions to the Financial Assistance Award Between the Denali Commission and Alaska Energy Authority for Statewide Bulk Fuel and Energy Program NEW FUNDING]REALLOCATED VILLAGE PROJECT ($)FUNDING ($)Funding Source Akutan BFU,Construction $393,459 TAPL 04 #2 Akutan BFU,Construction $(393,459)|Base 04 Nanwalek BFU,Construction $700,000 TAPL 04 #2 Nanwalek BFU,Construction $(700,000)|Base 04 Ciarks Point BFU Construction $935,033 TAPL 04 #2 Clarks Point BFU Construction $(935,033)|Base 04 EPA 04,transfer to project Newhalen BFU,Construction $(919,575)/97 Newhalen BFU,Construction 3 (224,425)|Base 04 Statewide Energy Cost Reduction RFP $(346,333)}|Base 04 BFU,Start CDR design, llliamna business plan $(75,000)|/TAPL 04 #4 BFU,Start CDR design, Levelock business plan $75,000 |TAPL 04 #1 Statewide Business Pian Monitoring $100,000 Base 04 Other energy-BFU retrofit & Nunam Iqua,Nikoiski revision $100,000 Base 04 Pelican BFU,final design $100,000 Base 04 Pelican RPSU,final design $50,000 Base 04 Pelican Hydro Other energy-hydro retrofit $250,000 Base 04 Kwethiuk BFU Construction $75,760 |$570,758 |Base 04 Denali Commission Projects Admin Support at 3%of new Statewide funding $20,900 Base 04 'Total Funding Revision |$2,725,152 |$(2,948,067)$(222,915) Paragraph 3 of award condtions is revised to the following:"The cost principles of OMB A-87 are applicable to this Award.The direct cost of AEA personnel time devoted to and identified on their timesheets for the performance of the award,i.e.plan and construct the projects under section 1 of this award,are allowable.In addition,up to 3%of the total costs under this award are allowable for the direct cost of AEA personnel time devoted to and identified on their timesheets for administration of the award.AEA direct personnel costs for grant administration exceeding the 3%limit plus indirect costs will be considered a matching contribution". August 2004 TO:file RE:Need for budgets control Date:Sep 23,2004 1.IN order to gain better control of our budget for projects,it is clear that we need ( Mello and Harper)need to have a tighter control so that we can catch situations that happened with Kwethluk this week.That is we did not catch that we had put money there despite the funds coming in from DC in Amend.#14. 2.We need to use our jet reports better so that we can be tracking this and catch anything that happened this week. 3.WE still have a shortage for:Deering of $200,000+;and Energy Cost Reduction of $340,000. 4.We will need to pound this out of some "sacrificial project "like we did to Newhalen last time.So we can make it up. CAro]VERES WE72ULTP x 2r/ ;Project Number 0116-DC-2004-14FinancialAssistance xAwardProjectTitleTok-Chistochina Regional Intertie DENALI COMMISSION _|Performance Period 2/01/2003 through 17/3|est510"L"Street,Suite 410 we ae Anchorage,Alaska 99501 Authorizing Resolution |04-01 a by [ (907)271-1414 (phone)Recipient Organization &Address C!(907)271-1415 (fax)Alaska Power Company Vewww.denali.gov P.O.Box 3222 Authority CFDA Number Port Townsend,WA 98368-0922 112 Star 1854 90.100 Denali Commission Finance >ne (50)4855177 psOfficerCertificationCaaERecipientDUNS#bans Cost Share Distribution Table Accounting Code Denali Commission Other Contributors Total Ta95670000$2,000,000 ae $0 $0 $0 $0 Total $2.000,000 $0 $2,000,000 This Financial Assistance Award approved by the Federal Co-Chair of the Denali Commission is issued in triplicate and constitutes an obligation of federal funding.By signing the three documents,the Recipient agrees to comply with the Award provisions indicated below and attached.Upon acceptance by the Recipient,two signed Award documents shall be returned to the Federal Co-Chair of the Denali Commission and the Recipient shall retain the third document.If not signed and returned without modification by the Recipient within 30 days of receipt,the Federal Co-Chair may unilaterally terminate this Award.XI Special Award Conditions and Attachments (-]Line Item Budget {]OMB Circular A-133,Audits of States,Local Governments,and Non-Profit Organizations httoy//A vww_whitehouse.gov/omb/circulars/al33/al33.html) Administrative Requirements (check one) {_]OMB Circular A-102,Grants and Cooperative Agreements with State and Local Governments chttp://www.whitehouse.gov/omb/circulars/a!02/a102.html) {X]OMB Circular A-110,Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education,Hospitals,and Other Nonprofit,and Commercial Organizations (http:/Avww.whitehouse,gov/omb/circulars/al 10/al 10.htm)) Cost Principles (check one) (_]OMB Circular A-87,Cost Principles for State,Local and Indian Tribal Governments (www.whitehouse.gov/omb/circulars/a087/a087-alLhtm)["]OMB Circular A-122,Cost Principles for Nonprofit Organizations (www,whitehouse.gov/omb/circulars/al22/ai22.html) (-]OMB Circular A-21,Cost Principles for Educational!Institutions (http:/Avww.whitehouse,cov'omb/circulars/a02 1/a02 1 htm) &X]48 CFR 31.2,Contracts with Commercial Organizations Signature of Authorized Official -Denali Commission Typed Name and Title Date Jeffrev B.Staser,Federal Co-Chair a -/p oy Signature A i igf Alaska Power Company Typed Name and Title Date Robert S,Grimm,President 2-lo-roAlaskaPowerCompany Rev:12/2003 Award Conditions to the Financial Assistance Award Between the Denali Commission and Alaska Power and Telephone Company (APT) For:Construction of Tok-Chistochina Regional Intertie Project No.0116-DC-2004-I4 1.Scope of Work The project consists of four phases that will connect about 70 initial customers to central station power: e Construct a 4.5 mile 12.5 kv three-phase extension north of Chistochina,providing service to six unserved customers at a cost of $275,000. e Convert 6 miles of single-phase 12.5 kv distribution line along the Mentasta Road to three-phase at a cost of $110,000. e Construct two miles of three-phase 12.5 kv line from Mentasta Road to Mentasta Lodge at a load of 20kW and at a cost of $215,000 e Complete the Slana area distribution system.The system consists of a diesel generation module.The module will contain two John Deere 150 kW generation units for winter peaking and one John Deere 90 kW unit installed for the summer load.The module will be equipped to utilize the waste heat with either the local school or the National Park Service or both being the host.Fuel is to be delivered by a tanker truck and stored in a 3000-gallon fuel-storage holder that is UL approved with secondary containment.The annual fuel consumption is estimated to about 50,000 gallons.The distribution system is standard RUD construction meeting the NESC requirements, consisting of 1.5 miles of three-phase,10.76 miles of single phase 12470/7200- grounded wye.The system will provide central station electric service to about 65 households.The cost is estimated to be $1.4 million. The overall cost of the effort is expect to be $2 million funded by the Denali Commission. All Commission funding is intended for use for the scope of work identified in the Award document only.In the event there is a balance of funding remaining after the full scope of work has been completed,the Denali Commission shall determine how the excess funds will be allocated. 2.Milestones Identify the milestones to be completed as part of the project.Planned dates for the first milestone shall be included here. Final Design 02/04/2004 |04/07/2004 Construction 02/20/2004 07/15/2005 Award Conditions,Project No.0116-DC-2004-I4 Page 2 of 5 Tok-Chistochina Regional Intertie February 2004 Alaska Power Company 3.Award Performance Period 4. 6. 7. The Award performance period is December 1,2003 through December 31,2005.This is the period during which Award recipients can incur obligations or costs against this Award. Direct and Indirect Costs The cost principles of 48 CFR 31.2,Contracts with Commercial Organizations are applicable to this Award.Indirect costs up to 20%are allowable under this Award and are included in the amount of the award.Please refer to the cost principles regulations for specific details on other allowable charges under this Award. Budget and Program Revisions The Administrative Circular OMB Circular A-110 applies to this Award.Please refer to the Administrative Circular for specific details on revisions to this Award.The Administrative Circular requires that APT will inform the Commission in writing (e-mail, letter,or report)at the earliest possible date of any unanticipated project cost overrun, project schedule delays,or changes in the project scope or changed site conditions. Payments Payments under this Award will be made through the U.S.Department of Treasury's Automated Standard Application for Payment (ASAP)system.The ASAP system is the Commission's mechanism for requesting and delivering Federal funds to Award recipients.Your organization must be registered with the ASAP program in order to make draw downs.Please contact the Commission's Program Manager or Finance Manager for further information about registering with the ASAP program.Payments shall be made in accordance with OMB Circular A-110.No interest will be accrued on these funds. Reporting Three forms of project reporting are required under this Award,listed below.APC shall submit reports using the Denali Commission's on-line Project Database System,available at www.denali.gov.If there are technical limitations,which may prevent the recipient from meeting this requirement,please contact the Program Manager listed in this agreement. a.Progress Reports shall be submitted on a quarterly basis.The first reporting period is January 1,2004 through March 30,2004,and each quarter thereafter. Reports are due within 30 days of the end of the reporting period.Progress reports shall include the following: Award Conditions,Project No.0116-DC-2004-I4 Page 3 of 5Tok-Chistochina Regional Intertie February 2004 Alaska Power Company i.Total project funding,including both Denali Commission funding and other project funding sources. ii.The total project expenditures for the project as of the end of the reporting period,including both Denali Commission and Other funding sources. iii.|Update schedule and milestone information as identified in the Scope of Work iv.Narrative summary of the project status and accomplishments to date,and address the following questions:is the project on schedule,is the project on budget,and what actions are planned to address any project problems. v.Construction Projects Photographic documentation of project progress shall be provided with the progress reports for active construction projects. The photo documentation shall include a minimum of three,dated photos per reporting period such that a complete record of the construction is maintained over time,from "before,”showing the situation before the start of construction,to "during”showing work proceeding on the project,and "after”to show the finished project.Photos shall be provided in a digital format as part of the on-line report.A short description of the activity and names of those in the photos shall also be provided. b.Wage and Residency Reports shall be submitted on an annual basis using the Denali Commission On-line Project Database.The reporting period is January 1*-December 31*of each year.Reports are due within 30 days of the end of the reporting period.The Wage and Residency Report shall include the following information by for each construction project i.Total number of Local Residents employed during the year,and their total payroll earnings. ii.Total number of Non-Local Alaska Residents employed during the year, and their total payroll earnings. ili.Total number of Non-Alaska Residents employed during the year,and their total payroll earnings. c.Federal Single Audits shall be submitted annually,when required.In accordance with OMB Circular A-133,which requires [subpart 200]"Non- Federal entities that expend $500,000 or more in a year in Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part.[subpart 205]The determination of when an award is expended should be based on when the activity related to the award occurs.” Recipients shall also submit single audits to the Federal Clearinghouse designated by OMB.Information can be found on the following web-site: http://harvester.census.gov/sac/ Award Conditions,Project No.0116-DC-2004-14 Page 4 of 5 Tok-Chistochina Regional Intertie February 2004 Alaska Power Company 8 Project Close-Out The project close-out shall be completed within 90 days of the end of the Award performance period or within 90 days of the completion of the project,whichever is earlier.Recipients must also draw down any remaining funds for expenditures incurred under this award during this 90-day period. The Project Close-out report shall be submitted on-line through the Denali Commission's on-line Project Database System,available at www.denali.gov.The project close out will require the recipient to submit the following information: a.Final data for each item listed in paragraph 6(a)"Progress Reports” b.Final project expenditures itemized by the following categories:planning & design;materials &equipment;freight;labor;project administration/overhead and other expenses. c.Acknowledgement of support:For all construction projects,the Award recipient shall include an acknowledgement of the Government's support for the project(s) developed under this Award.The Award recipient shall display a sign that: i.Has the Denali Commission logo displayed on the upper right-hand quadrant; ii.States the following:"This project was financed by the Denali Commission and its partners (Jist the name of the funding partners)”; iii.|Shows the logo of each partner in the lower right-hand quadrant. The cost of this sign shall be paid out of the project funding received by the Award recipient from the Denali Commission.Final approval of signage material and placement of sign must be obtained from the Commission Project Manager. 9.Public Policy Laws and Assurances Award Recipients are required to comply with the public policy laws and assurances on Standard Forms SF 424b (non-construction projects)or SF 424d (construction projects). This form must also be signed bya certifying official of the organization.Some of the laws are highlighted below for your reference. To the maximum extent practicable,considering applicable laws,Funding Recipients shall accomplish the project contemplated by the Award using local Alaska firms and labor. No portion of this award may be used for lobbying or propaganda purposes as prohibited by 18 U.S.C.Section 1913 or Section 607(a)of Public Law 96-74. Project level environmental reviews in accordance with the National Environmental Policy Act (NEPA)and the National Historic Preservation Act (NHPA)are required for Award Conditions,Project No.0116-DC-2004-I4 Tok-Chistochina Regional Intertie Alaska Power Company Page 5 of 5 February 2004 each project undertaken with Denali Commission funds.NEPA reviews performed for other funders of this project shall be deemed sufficient for this project award if they are available and applicable to same or greater scope. 10.Non-Compliance with Award Conditions Recipients not in compliance with the terms and conditions of this Financial Assistance Award will be notified by the Denali Commission.The Denali Commission will work with the recipient to identify the steps necessary to bring them back into compliance,and will establish an appropriate time frame for the corrections to be made.If the corrections have not been made by the deadline,the Denali Commission reserves the right to either suspend or unilaterally terminate the Financial Assistance Award for non-performance. I].Program Manager,Financial Manager &Other Contact Information APC project officers are Bob Grimm for purposes of project design and construction and Karl Wood for purposes of financial management.The Commission project officers are Ms.Kathleen Prentki.for purposes of project management and Ms.Michelle O'Leary for purposes of financial management. Denali Commission Alaska Power Company. Ms.Kathleen Prentki 510 "L”Street,Suite 410 Anchorage,AK 99501 Voice -(907)271-1414 Fax -(907)271-1415 e-mail:kprentki@denali.gov Robert S.Grimm,President 193 Otto Street,P.O.Box 3222 Port Townsend,WA.98368 Voice-800-982-0136 x120 Fax-360-385-7538 Email:bob.g@aptalaska.com Ms.Michelle O'Leary 510 "L”Street,Suite 410 Anchorage,AK 99501 Voice -(907)271-1767 Fax -(907)271-1415 e-mail:moleary@denali.gov Karl Wood,Senior Accountant 193 Otto Street,P.O.Box 3222 Port Townsend,WA.98368 Voice-800-982-0136 x 128 Fax-360-385-7538 Email:karl.w@aptalaska.com Tok-Chistochina Regional Intertie System Attachment 2 Local Support Summary The Tok to Chistohina Regional Intertie Systern is supported by: Copper River School District Cheesh-Na Tribal Council Mentasta Traditional Council Ahtna Incorporated Copper Valley Telephone Cooperative State of Alaska Department of Transportation National Park Service Slana residentsPNAWESYWN> Tok-Chistochina Regional Intertie System Attachment 2 Local Support Summary The Tok to Chistohina Regional Intertie System is supported by: Copper River School District Cheesh-Na Tribal Council Mentasta Traditional Council Ahtna Incorporated Copper Valley Telephone Cooperative State of Alaska Department of Transportation National Park Service Slana residentsPNAWEWN Tok to Chistochina Regional Intertie System Provided By Bob Grimm President of Alaska Power &Telephone Company Electric service is the most basic form of infrastructure,because even other essential services such as water and sewer are dependent on it.Providing lower cost,more reliable electricity to those areas of rural Alaska where power costs are extremely high is an especially worthy public interest purpose. Current System Alaska Power Company (APC),the wholly owned retail electric subsidiary of Alaska Power &Telephone Company,provides electric service to about 1,000 customers in the close-in Tok Area at an average price of 20 cents/kWh.For outlying,non-interconnected communities along the Glenn Highway such as Mentasta and Chistochina,the average cost of power is about 35 cents/kWh. Project Description The project will consist of 83 miles of light transmission/heavy distribution intertie line from Tok to Chistochina.The design is a wood pole 69kV line to be operated at 34.5 kV until interconnected with a larger system.The design includes an underbuild distribution system to be built as part of the original construction.A routing has been identified and initial discussions have been held with individual consumers,local schoo!districts,local tribal councils,the National Park Service and the Alaska Department of Transportation/Public Facilities.Based on the discussions,there appears to be broad support for a Tok-Chistochina intertie. Cost of System The $20.5 million regional system is 50%complete and has largely been funded by the private sector. Completed elements include: e The $9.6 million Tok generation,transmission,and distribution system,funded by the private sector. e The $500,000 Chistochina generation,transmission,and distribution system funded by the private sector. e The $400,000 Mentasta generation,transmission,and distribution system funded by the private sector. The total cost to complete the system is $10 million.$2 million in Federal Funds was appropriated for fiscal year 2003,leaving $8 million needed to complete the project.Planning is underway to utilize the $2 million appropriated in 2003 to complete the next four phases of the project including: e Construct a 4.5 mile three-phase extension north of Chistochina,providing service to six unserved customers at a cost of $275,000. e Convert 6 miles of single-phase along the Mentasta Road to three-phase at a cost of $110,000. e Construct two miles of three-phase 34.5kv line from Mentasta Road to Mentasta Lodge at a load of 20kW and at a cost of $215,000. e Complete the Slana area distribution system including 5 miles on the Glenn Highway,north and south of Slana Junction,providing service to 60 customers at a cost of $1.4million. Needed to complete the Tok to Chistochina Regional Intertie System is $8 million,which includes the following phased projects: e $1.8 million to construct a 20-mile 69kV transmission/heavy distribution intertie line from Mentasta to Slana. Tok-Chistochina Regional Intertie System Attachment 1 e « Tok to Chistochina Regional Intertie System 2 e $1.8 million to construct an 18-mile 69kV transmission/heavy distribution intertie line from Slana to Chistochina. e $1.6 million to construct an 11-mile 69kV transmission/heavy distribution intertie line north from Mentasta to Mineral Lakes. e $2.8 million to construct a 27-mile 69kV transmission/heavy distribution intertie line from Mineral Lakes to Tok,which will include a 6.5 mile underbuild in Tok proper,and the 2MVA Step-up Transformer. These funds if granted will leave a non-federal to federal funds ratio of approximately 2 to 1 based on a total overall $20.5 million cost. Public Interest Benefits The major benefit is the provision of reliable,more reasonably priced electric service to this area of rural Alaska through an interconnected system utilizing lower-cost generation in Tok.Power costs will be reduced from about 35 cents/kWh to about 20 cents/kWh for more than 200 homes,businesses and government facilities (including Wrangell-St.Elias National Park)in the Mentasta,Chistochina and Slana areas and individual consumers in between,many of whom now self-generate.In addition,centralized electric service will facilitate economic development along this section of the Glenn Highway,including residential construction on currently undeveloped lots. Public safety will be enhanced with a system that is in full compliance with the National Electric Safety Code and other standards.The environment will be improved as small,less efficient generators are replaced with central station service from Tok.There will also be a substantial reduction in the amount of annual payments required from Alaska's Power Cost Equalization Fund to support the cost of electricity in the region. Tok-Chistochina Regional Intertie System Attachment 1 Message Page 1 of 1 Mike Harper From:Kathy Prentki [KPrentki@denali.gov] Sent:Wednesday,January 21,2004 11:40 AM To:Mike Harper;Chris Mello;Amy McCollum Ce:Michelle O'Leary Subject:DRAFT AEA Award Conditions for 2004.doc This is a proposed draft of award conditions to AEA taking into account the new reporting requirements.It also limits to 10%+/-the authority to shift funding between project line items without written authorization of the Commission.The resolution of digital photos will be specified later.This is anticipated to replace the award conditions for financial assistance award (FAA)48.The FAA 97,for the RUS funding will have similar wording and restrictions. Please review and let me know if you see discrepancies or problems,so when it's time to do amendments we'll be ready. Thanks, Kathy Prentki 1/21/2004 Award Conditions to the Financial Assistance Award Between the Denali Commission and Alaska Energy Authority For Rural Bulk Fuel and Power System Upgrades Project No. 1.Scope of Work The scope of work under this Financial Assistance Award (the ""Agreement”)is to plan and construct the projects listed on the attached "Approved Project List”.Any surplus of funds (on one or more of the projects funded under this Agreement)may be used on other projects identified under this Agreement that may be experiencing a project shortfall.However,any change in project funding that exceeds +/-10%of the original amount funded must be justified and approved in writing in accordance with paragraph 4.The intent is not to set - aside a specific sum of Commission funding to a particular community,but rather that the projects on "Approved Project List”are completed successfully.TAPL money may be used only for Bulk Fuel projects. 2 3 There are many issues such as facility location,project ownership,construction costs,andcompliancewithsustainabilitycriteriathatrequireresolutionpriortoproceedingwithconstruction.If project issues cannot be resolvedin a reasonable time frame,the Commission expects AEA to move down the priority list to projects that are ready to proceed to construction.It is expected that the Commission and AEA Project Officers will meet quarterly to review the progress of projects and collaboratively determine if reasonable progress is being made and what steps should be taken,if any,to deal with new developments encountered in the design and construction process. AEA will make subgrants to Alaska communities or local utilities to construct the projects, and AEA may act as the subgrantees'agent to plan,design,and construct the projects. All Commission funding is intended for use for the scope of work identified in the Award document only.In the event there is a balance of funding remaining after the full scope ofworkhasbeencompleted,the Denali Commission shall determine how the excess funds will be allocated.-_ 2.Award Performance Period The Award performance period is February 1,2002through January 31,2005 This is theperiodduringwhichAwardrecipientscanincurobligationsorcostsagainstthisAward.Due to the nature of the continuation award,cost incurred prior to February 1,2002 for projects which have been carried forward from a previous award are allowable under this award. 3.Direct and Indirect Costs The cost principles of OMB A-87 are applicable to this Award.The direct cost of AEA personnel time devoted to and identified on their timesheets for the performance of the award,i.e.plan and construct the projects under section 1 of this award,are allowable.In addition,up to 3.5%of the total costs under this award are allowable for the direct cost of AEA personnel time devoted to and identified on their timesheets for administration of the Award Conditions,Project No.Page 2 of 5 Alaska Energy Authority award.AEA direct personnel costs for grant administration exceeding the 3.5%limit plus indirect costs will be considered a matching contribution. 4.Budget and Program Revisions The OMB Administrative Circular A-102 applies to this Award.Shifting of funding between project line items by AEA is allowed provided the change is within 10%(+/-)of the line item amount funded in this award,and there is no increase in the total funding provided by the Commission.The Commission Program Manager is to be notified on all revisions to the "Approved Project List”as part of the progress report under section 6.a.of this award. Written request by letter from the AEA Project Manager to the Commission Program Manager for concurrence is necessary for budget and program revisions where the change to an individual project budget exceeds the 10%(+/-)limit,or when projects are added or deleted or that would result in the need for additional Commission funds. 5.Payments Payments under this Award will be made through the U.S.Department of Treasury's Automated Standard Application for Payment (ASAP)system.The ASAP system is the Commission's mechanism for requesting and delivering Federal funds to Award recipients. Your organization must be registered with the ASAP program in order to make draw downs. Please contact the Commission's Program Manager or Finance Manager for further information about registering with the ASAP program.Payments shall be made in accordance with {Administrative Circular}.No interest will be accrued on these funds. 6.Reporting Three forms of project reporting are required under this Award,listed below.{Org Name} shall submit reports using the Denali Commission's on-line Project Database System, available at www.denali.gov.If there are technical limitations which may prevent the recipient from meeting this requirement,please contact the Program Manager listed in this agreement. a.Progress Reports shall be submitted on a quarterly basis.The first reporting period is January 1,2004 -March 31,2004,and each quarter thereafter.Reports are due within 30 days of the end of the reporting period.Progress reports shall include the following: i.Total project funding,including both Denali Commission funding and other project funding sources. ii.The total project expenditures for the project as of the end of the reporting period, including both Denali Commission and Other funding sources. iii.|Update schedule and milestone information as identified in the Scope of Work iv.Narrative summary of the project status and accomplishments to date,and address the following questions:is the project on schedule,is the project on budget,and what actions are planned to address any project problems. * Award Conditions,Project No.Page 3 of 5 Alaska Energy Authority v.Construction Projects Photographic documentation of project progress shall be provided with the progress reports for active construction projects.The photo documentation shall include a minimum of three,dated photos per reporting period such that a complete record of the construction is maintained over time, from "before,”showing the situation before the start of construction,to "during” showing work proceeding on the project,and "after”to show the finished project. Photos shall be provided in a digital format as part of the on-line report.A short description of the activity and names of those in the photos shall also be provided. y vi.Non-Construction Projects For minor repair and renovation projects or other\ye non-construction projects,pictures should be provided of before and after,or photos that are representative of the funded activity,to the extent possible. description of the activity and names of those in the photos shall also be provided.hy Photos shall be provided in a digital format as part of the on-line report.A short b.Wage and Residency Reports shall be submitted on an annual basis using the DenalistCommissionOn-line Project Database.The reporting period is January 1 -DecembercosS31ofeachyear.Reports are due within 30 days of the end of the reporting period.The.yyuery Wage and Residency Report shall include the following information by for eachconstructionproject i.Total number of Local Residents employed during the year,and their total payroll earnings. ii.Total number of Non-Local Alaska Residents employed during the year,and their total payroll earnings. iii.|Total number of Non-Alaska Residents employed during the year,and their total op payroll earnings. c.Federal Single Audits shall be submitted annually,when required.In accordance with th OMB Circular A-133,which requires [subpart 200]"Non-Federal entities that expend $500,000 or more in a year in Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of this part.[subpart 205] The determination of when an award is expended should be based on when the activity related to the award occurs.” Recipients shall also submit single audits to the Federal Clearinghouse designated by OMB.Information can be found on the following web-site:* http://harvester.census.gov/sac/oaf 1 4 mnsapebeAeoy7.Project Close-OutTheprojectclose-out shall be completedyt 90 days of the end of the Award performance'.period or within 90 days of the campletioh of the project,whichever is earlier.AEA shallne_|submit project close-out reports for each project line-item funded as part of this award.xe AN Should an individual physical project receive funding under multiple Denali Commission Awards,only one project close-out report shall be submitted that includes the entire project. Award Conditions,Project No.Page 4 of 5 Alaska Energy Authority Recipients must also draw down any remaining funds for expenditures incurred under this award during this 90-day period. The Project Close-out report shall be submitted on-line through the Denali Commission's on- line Project Database System,available at www.denali.gov.The project close out will require the recipient to submit the following information: a.Final data for each item listed in paragraph 6(a)"Progress Reports” b.Final project expenditures itemized by the following categories:planning &design; materials &equipment;freight;labor;project administration/overhead and other expenses. c.Acknowledgement of support:For all construction projects,the Award recipient shall include an acknowledgement of the Government's support for the project(s)developed under this Award.The Award recipient shall display a sign that: i.Has the Denali Commission logo displayed on the upper right-hand quadrant; ii.States the following:"This project was financed by the Denali Commission and its partners (list the name of the funding partners)'; iii.|Shows the logo of each partner in the lower right-hand quadrant. The cost of this sign shall be paid out of the project funding received by the Award recipient from the Denali Commission.Final approval of signage material and placement of sign must be obtained from the Commission Project Manager. 8.Public Policy Laws and Assurances Award Recipients are required to comply with the public policy laws and assurances on Standard Forms SF 424b (non-construction projects)or SF 424d (construction projects). This form must also be signed bya certifying official of the organization.Some of the laws are highlighted below for your reference. To the maximum extent practicable,considering applicable laws,Funding Recipients shall accomplish the project contemplated by the Award using local Alaska firms and labor. No portion of this award may be used for lobbying or propaganda purposes as prohibited by 18 U.S.C.Section 1913 or Section 607(a)of Public Law 96-74. Project level environmental reviews in accordance with the National Environmental Policy Act (NEPA)and the National Historic Preservation Act (NHPA)are required for each project undertaken with Denali Commission funds. 9.Non-Compliance with Award Conditions Recipients not in compliance with the terms and conditions of this Financial Assistance Award will be notified by the Denali Commission.The Denali Commission will work with Award Conditions,Project No. Alaska Energy Authority Page 5 of 5 the recipient to identify the steps necessary to bring them back into compliance,and will establish an appropriate time frame for the corrections to be made.If the corrections have not been made by the deadline,the Denali Commission reserves the right to either suspend or unilaterally terminate the Financial Assistance Award for non-performance. 10.Program Manager,Financial Manager &Other Contact Information Denali Commission Alaska Energy Authority Ms.Kathleen Prentki 510 "L”Street,Suite 410 Anchorage,AK 99501 Voice -(907)271-1414 Fax -(907)271-1415 e-mail:kprentki@denali.gov Mr.Chris Mello 813 W.Northern Lights Blvd. Anchorage,AK 99503 Voice -(907)269-4649 Fax -(907)269-3044 e-mail:cmello@aidea.org Ms.Michelle O'Leary 510 "L”Street,Suite 410 Anchorage,AK 99501 Voice -(907)271-1767 Fax -(907)271-1415 e-mail:moleary@denali.gov Ms.Amy McCollum 813 W.Northern Lights Blvd. Anchorage,AK 99503 Voice -(907)269-4629 Fax -(907)269-3044 e-mail:amccollum@aidea.org 11.Denali Commission Policies AEA agrees to comply with the Commission's resolution 01-15 resolution on sustainability, the Commission's sustainability criteria,private enterprise policy,project prioritization policy,pipelines and dispensers policy,and project design capacity policy,and cost containment policy. Message Page 1 of 1 Mike Harper From:Kathy Prentki [KPrentki@denali.gov] Sent:Wednesday,January 21,2004 11:40 AM To:Mike Harper;Chris Mello;Amy McCollum Ce:Michelle O'Leary Subject:DRAFT AEA Award Conditions for 2004.doc This is a proposed draft of award conditions to AEA taking into account the new reporting requirements.It also limits to 10%+/-the authority to shift funding between project line items without written authorization of the Commission.The resolution of digital photos will be specified later.This is anticipated to replace the award conditions for financial assistance award (FAA)48.The FAA 97,for the RUS funding will have similar wording and restrictions. Please review.and let me know if you see discrepancies or problems,so when it's time to do amendments we'll be ready. Thanks, Kathy Prentki 1/21/2004 PROJECT COST AND JUSTIFICATION FOR RURAL UTILITIES SERVICE REQUES...Page 1 of 5 Mike Harper From:Chris Mello Sent:Saturday,September 07,2002 9:19 AM To:Mike Harper Subject:RE:RUS funding request justification August 27 revision Mike, 1 know some of this story as you do.Bad deal for the villages that got involved.We lent them $for tanks that turned out to be out of code.I'il check with Sue and David who was around when this went down.We'll get an answer for Brent and the folks he copied.cm From:Mike Harper Sent:Thursday,September 05,2002 10:16 AM To:Chris Mello Ce:David Lockard;Lenny Landis Subject:FW:RUS funding request justification August 27 revision Chris:can you visit with our AEA crew and figure out best answer to Brent.You will want to check with Sue Weimer as we made loans on this one in Ahkiok and the three other places.Nelson Lagoon,etc. |understand some of these may still be working,though not quite code compliant. 9/9/2002 -----Original Message----- From:Brent Petrie [mailto:bpetrie@avec.org] Sent:Wednesday,September 04,2002 5:38 PM To:Kathy Prentki;Meera Kohler;mharper@aidea.org;Chris Mello;Brent Stonebraker;Marie Becker;David Lockard;Lenny Landis Subject:RE:RUS funding request justification August 27 revision Curiosity question.-About two years ago |landed in Ahkiok and the APS diesel plant was operating near the airport with several bright and shiny stainless steel tanks next to the plant.What happened to the APS modules and stainless steel tanks?Were they repossessed by NBA and removed? Brent P. From:Kathy Prentki [mailto:KPrentki@denali.gov] Sent:Wednesday,September 04,2002 4:17 PM To:Meera Kohler;mharper@aidea.org;Chris Mello;Brent Petrie;Brent Stonebraker;Marie Becker;David Lockard;Lenny Landis Subject:RUS funding request justification August 27 revision Below is the final version of the successful funding justification we sent to RUS last week.You can see the additional information we supplied beyond the initial statement of urgency paragraphs we sent in the first iteration.Also,I see now that I forgot to change date in the header on first page,but the succeeding pages correctly ID the date as the 27th.May be the model for the future.Kathy Rural Power Supply Upgrades Kongiganak -Powerhouse and Power Distribution System -The collection of old p: insufficient to provide reliable electric power to the residents of the village throughot health and safety infrastructure development projects in water/sewer plants,commun modernized housing have increased the electric power demands beyond the reliable c modules.The school district is planning the construction of a new school in the next PROJECT COST AND JUSTIFICATION FOR RURAL UTILITIES SERVICE REQUES...Page 2 of 5 9/9/2002 power demand.Portions of the old distribution system are out of NESC safety stand: threat.The power plant was ranked 15"worst of 171 rural power systems evaluated in 2001.The increased demand on the system especially in the cold winter months tl existing system,which would leave the community without power.Kongignak is no This project will replace the existing 535 kW capacity power plant with a 710kW cay generators,with capacity to carry projected peak load),in a new,code compliant buil system designed to protect this critical village infrastructure.The project will also re poles and install new pile anchored down guys on all guyed poles.The environmenti for this project are nearly complete,and the project is ready to be contracted. Kwigillingok -Powerhouse Project -The existing powerhouse is an old wooden stn hazard.Two out of the three generators are inoperable and beyond their useful servic in the winter are at the maximum capability of the one operating generator with no bz forced to run its own standby generator for several years due to the unreliability and | powerhouse.The power plant was ranked 10°worst of 171 rural power systems eva Authority in 2001.The increased demand on the system especially in the cold winte overload the existing system,which would leave the community without power.Kw by road. This project will replace the existing 600kW capacity power plant with a 710kW cap generators,with capacity to carry projected peak load for the full community),in a ne with fire suppression system designed to protect this critical village infrastructure.T assessments and permitting for this project are nearly complete,and the project is rea PROJECT COST AND JUSTIFICATION FOR RURAL UTILITIES SERVICE REQUES...Page 3 of 5 9/9/2002 Manokotak -Powerhouse Project -Three of the four generators are inoperable and t life.The only operating generator is taxed to its demand limit throughout the winter. old wooden structure that is falling apart and is a life-safety hazard.It also presents ¢ community,which has limited fire fighting capability.The power plant was ranked |] systems evaluated by Alaska Energy Authority in 2001.The increased demand on th cold winter months threatens to overload the existing system,which would leave the Manokotak is not accessible by road. This project will immediately provide a 350 kW standby generator module to ensure the winter.The existing 839 kW capacity power plant will be replaced with the new mile line extension to Dillingham when property clearances can be completed.If the completed,the entire power plant will be replaced by a new power plant (four new g carry projected peak load for the full community),in a new,code compliant building. system designed to protect this critical village infrastructure.The environmental ass¢ the power plant replacement are nearly complete,and the project is ready to be contr Golovin -Powerhouse Project -Only one generator is capable of carrying the town up,and it is housed in a walled-off section of the city's wooden vehicle maintenance hazard.It also presents a fire hazard to the community,which has limited fire fightin; and a new community washeteria are currently under construction and will add consi demand in the next year.The power plant was ranked gth worst of 171 rural power s Energy Authority in 2001.The increased demand on the system especially in the col overload the existing system,which would leave the community without power.Gol road. This project will replace the existing 535kW capacity power plant with a 580kW cap generators,with capacity to carry projected peak load for the full community),in a ne with fire suppression system designed to protect this critical village infrastructure.T assessments and permitting for this project are nearly complete,and the project is rea PROJECT COST AND JUSTIFICATION FOR RURAL UTILITIES SERVICE REQUES...Page 4 of 5 ' 9/9/2002 Atmautluak -Power Distribution System -The existing system is a non-code compl 480V),non-standard utility pole system in serious disrepair.Transformers and wirin unsafe condition and subject to continuous failures.Many transformers have been de jacked by frost;secondary runs are supported over buildings on tree limbs and lumbe distribution system was ranked 3rd worst of 171 rural power systems evaluated by A 2001.The distribution system presents a severe life-safety hazard to the community, Failure in the distribution system would jeopardize power to the entire community. by road. This project will replace the entire distribution system in the community of Atmautlu 12.47kV distribution system with a step up transformer,26 transformers,and 70 new bases.The environmental assessments and permitting for this project are nearly com to be contracted. Subtotal for Rural Power Supply Upgrades Bulk Fuel Upgrades White Mountain existing bulk fuel system has severe leaks which result in contamir water as well as fuel loss.It also exhibits numerous code violations which present lit catastrophic fuel spill would endanger the health of the 203 village residents and pot subsistence fishery upon which they rely for food.The fuel barge is sometimes unabl community because of low water:an additional fill point is needed at the airport to e1 for the power plant and school operations,as well as individual residential needs.Wt accessible by road. This project will provide 238,000 gallons of fuel storage in a new,code-compliant cc with dispensing facilities.It will also provide an addition fill header at the airport to to receive fuel shipments in low water years.The environmental assessments and pe: nearly complete,and the project is ready to be contracted. 1.© PROJECT COST AND JUSTIFICATION FOR RURAL UTILITIES SERVICE REQUES...Page 5 of 5 9/9/2002 Shishmaref has critical need to replace 90,000 gallons of bulk fuel storage capacity 1 complete bulk fuel consolidation project which is under design presently.The tanks feet of the ocean,in an area which lost 250 feet of ground in one year (2000)due to v tanks are non-code compliant and in extremely poor condition.They cannot be move their structural integrity.The village cannot go through the winter with the amount o these tanks.Secure fuel storage must be established prior to the onset of winter,to e catastrophic damage during winter storms.Shishmaref is on a barrier island,and is n This project will provide three code compliant fuel tanks (total 90,000 gallons storag: ground which is not threatened by winter storm surge.The tanks will be reused in th storage project which is currently under design.All permits for this interim project h project is ready to be completed. Akhiok urgently requires new fuel tanks to replace their existing tanks.Tanks are ve old,located within 50'of salt water and without secondary containment.A tank failu community without power or heat.A catastrophic fuel spill would endanger the heal and potentially impact the subsistence fishery upon which they rely for food.Akhiok This project will provide 42,300 gallons of code compliant fuel storage in a consolid: away from the flood plain.The environmental assessments and permitting for this pr and the project is ready to be contracted. Subtotal for Bulk Fuel Upgrades Total request for RUS emergency funds fé Lone Borg ;.;Project Number 0048-DC-2002-14.Financial Assistance Amendment No.2 ait ae Award Proj .Bulk Fuel Consolidation UpgradesOWet ke roject Title :Ly &Power Generation\.DENALI COMMISSION "ALASK 510 "L"Street,Suite 410 Performance Period February 1,2002 -January 31,2003 Anchorage,Alaska 99501 . (907)271-1414 (phone)Recipient Name &Address (907)271-1415 (fax)State of Alaska www.denali.gov Alaska Energy Authority 813 W.Northern Lights Anchorage,AK 99503 Authority CFDA Number Phone:(907)269-3000 112 Stat 1854 90.100 Fax:(907)269-3044 Current Obligations Cumulative Obligations RUS Funding $1,141,375 Denali Other Totals Commission contributors Denali Commission Funds Authorized Current Funding for Carry Forward $53,838,675 $1,141,375 $0}$1,141,375 Total Current Denali Commission Funding from prior Budget $54,980,050 periods $53,838,675 $18,010,563 $71,849,238 Funding Totals $54,980,050 $18,010,563 $72,990,613 Funds Available and Apportioned by / OMB nfs This Financial Assistance Award approved by the Federal Co-Chair of the Denali Commission is issued in triplicate and constitutes an obligation of federal funding.By signing the three documents,the Recipient agrees to comply with the Award provisions indicated below and attached.Upon acceptance by the Recipient,two signed Award documents shall be returned to the Federal Co-Chair of the Denali Commission and the Recipient shall retain the third document.If not signed and returned without modification by the Recipient within 30 days of receipt,the Federal Co-Chair may unilaterally terminate this Award. {XJ Special Award Conditions and Attachments []Line Item Budget [XJ OMB Circular A-133,Audits of States,Local Governments and Indian Tribal Governments (www.whitehouse.gov/OMB/circulars/a133/a133 html) Administrative Requirements (check one) [x]15 CFR 24,Uniform Admin Requirements for Grants/Cooperative Agreements to State and Local Governments (www.access.gpo.gov/nara/cfr/waisidx_99/15cfr24_99.html)["]15 CFR,Part 14,Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education,Hospitals,Other Nonprofit,and Commercial Organizations (www.access.epo.gov/nara/cfr/waisidx_99/15cfr14_99 html) Cost Principles (check one) {x]OMB Circular A-87,Cost Principles for State and Local Governments and Indian Tribal Governments (www.whitehouse.gov/OMB/circulars/a087/a087-allhtml)[-]OMB Circular A-122,Cost Principles for Nonprofit Organizations (www.whitehouse.gov/OMB/circulars/a122/a122.html)_]OMB Circular A-21,Cost Principles for Educational Institutions (www.whitehouse.gov/OMB/circulars/a02 1/a021.html) (_]48 CFR 31.2,Contracts with Commercial Organizations Signature of Auffforized Official -Denali Commission Typed Name and Title Date VERA Jeffrey B.Staser,Federal Co-Chair 6f2 Sfof Signature of Adit Offici Typed Name and Title Date Robert Poe,Jr.,Executive Director ofpLl a Rev:01/02 No.0048-DC-2002-I1 June 2002 O°amendmen CLEA Project Increase for RPSU projects June |$1,600,000 Reduction for Grant 2002 to loan PPF $654,556 Net increase for new work $945,444 4%for RPSU new projects $64,000 4%for cost reduction grants $131,932 $1,141,375 |$53,838,675 |$54,980,050 $18,010,563 $72,990,613 Fj (SER istanceereONfad0}la 42 D)ISSION 5 uite 410 ANCHOUPaARE,Alaska FFOUI (907)271-1414 (phone)Project Number 0048-DC-2002-I1 (907)271-1415 (fax)Amendment No.4 -denali.gov Bulk Fuel Consolidation Upgrades & Power GenerationProjectTitle Performance Period February 1,2002 -January 31,2003 Recipient Name &Address State of Alaska Alaska Energy Authority 813 W.Northern Lights ;Anchorage,AK 99503AuthorityCFDANumber 112 Stat 1854 90.100 Denali Commission Finance Phone:(907)269-3000 Officer Certification Fax:(907)269-3044 Denali Other Denali Commission Funding $15,910,091 Commission |Contributors Totals Denali Commission Funds Authorized for Carry Forward |$56,408,853 Current Funding $15,910,091 |$300,000{$16,210,091 Total Current Denali Funding From Prior Commission Budget $72,318,944 Periods $56,408,853]$23,052,457]$79,461,310 Funding Totals $72,318,944]$23,352,457|$95,671,401 DC Expenditures as of 7/31/02 $26,676,131 This Financial Assistance Award approved by the Federal Co-Chair of the Denali Commission is issued in triplicate and constitutes an obligation of federal funding.By signing the three documents,the Recipient agrees to comply with the Award provisions indicated below and attached.Upon acceptance by the Recipient,two signed Award documents shall be returned to the Federal Co-Chair of the Denali Commission and the Recipient shall retain the third document.If not signed and returned without modification by the Recipient within 30 days of receipt,the Federal Co-Chair may unilaterally terminate this Award.[XJ Special Award Conditions and Attachments (_]Line Item Budget &]OMB Circular A-133,Audits of States,Local Governments and Indian Tribal Governments (www.whitehouse.gov/OMB/circulars/a133/al33.html) Administrative Requirements (check one) XX]15 CFR 24,Uniform Admin Requirements for Grants/Cooperative Agreements to State and Local Governments (www.access.gpo.gov/nara/cfr/waisidx_99/15cfr24_99.html) (1)15 CFR,Part 14,Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education,Hospitals,Other Nonprofit,and Commercial Organizations (www.access.gpo.gov/nara/cfr/waisidx_99/15cfr14_99.html) Cost Principles (check one) {J OMB Circular A-87,Cost Principles for State and Local Governments and Indian Tribal Governments (www.whitehouse.gov/OMB/circulars/a087/a087-allhtml)(C]OMB Circular A-122,Cost Principles for Nonprofit Organizations (www.whitehouse.gov/OMB/circulars/al22/a122.htm!) {_]OMB Circular A-21,Cost Principles for Educational Institutions (www.whitehouse.gov/OMB/circulars/a021/a021.html) []48 CFR 31.2,Contracts with Commercial Organizations Rev:01/02 Page 1 of 1 Mike Harper _ From:Sara Fisher-Goad Sent:Tuesday,June 25,2002 12:52 PM To:Jim McMillan;Mike Harper;Peter Crimp;Mike Mitchell Ce:Rebecca Garrett;Jodi Peterson Subject:FW:Please review 'award conditions for PPF loans kp1' Follow Up Flag:Review Flag Status:Flagged FYI -Kathy called me about the changes.|haven't had time to review the attachment,but based on my conversation with Kathy -|don't think the changes,as she described them,should be a problem.Please let me know if you see anything that causes concern. Sara From:Kathy Prentki [mailto:K Prentki@denali.gov] Sent:Tuesday,June 25,2002 12:18 PM To:Sara Fisher-Goad;Michelle O'Leary Subject:Please review 'award conditions for PPF loans kp1' Im still working on the cover sheet.The loan portion is $3,673,127 plus 4%or $146,925. Total award amount$3,820,052. Let me know if you see any glaring errors,please.Changes,as discussed:header &project number revised,Scope of work I further describe the source of projects selected here as last year's RFP,performance period starts with June 02,Direct &indirect costs deletes one sentence,and in reporting annotates that the other AEA award includes labor and photographic documentation requirements not called out here. Sara,please bring the report format this afternoon so we can take a look at that.What have I overlooked? Thanks, Kathy 6/25/2002 Award Conditions to the Financial Assistance Award Between the Denali Commission (Commission)and Alaska Energy Authority (AEA) For FFY 2002 Power Project Fund Capitalization June 2002 Project No.00788-DC-2002-129 1.Scope of Work The scope of work under this Financial Assistance Award is to capitalize the Power Project Fund (PPF)to initially provide loans for projects identified for award under the Request for Proposals for Alaska Energy Cost Reduction Projects which was issued May 18,2001 by AEA on behalf of the Denali Commission In accordance with AS 42.45.010 and AS 42.45.060 and 3 AAC 106.100-140 AEA will provide PPF loans to eligible borrowers to construct eligible projects. Repayment of principal,and payment of interest on and any fees for loans made with funds provided under this award,will be deposited into the PPF,and utilized for any purpose authorized under AS 42.45.010,AS 42.45.060 and 3 AAC 106.100-140. 2.Award Performance Period The award performance period is June 1,2002 through the initial disbursement of all the loans funded with this award,but no later than April 30,2007. 3.Direct and Indirect Costs The cost principles of OMB Circular A-87 are applicable to this award.Up to 4%of the total costs under this award are allowable for the direct cost of AEA personnel time devoted to and identified on their timesheets for administration of the award.AEA direct personnel costs for loan administration exceeding the 4%limit plus indirect costs will be considered a matching contribution. 4.Budget and Program Revisions Budget and program revisions to Commission funding shall be in accordance with 1SCFR24.30. Written request by letter from the AEA Project Officer to the Commission Project Officer for concurrence is necessary for budget and program revisions where projects are added or that would result in the need for additional Commission funds. 5.Reporting Two forms of project reporting are required under this award.Note that the grant portion of these projects is funded under Project No.0048-DC-2002-I1,which encompasses reporting requirements for labor and photographic documentation beyond the reports required under this award.Reports are due within 30 days of the end of the reporting *Award Conditions,Project No.0078-DC-2002-129 Page 2 Alaska Energy Authority June 2002 period.The Commission reserves the right,at a future date,to direct AEA to provide progress reports in electronic format for posting on the Commission web page. a.Project status reports shall be submitted to the Commission project officer quarterly in the attached format. b.A Financial Status Report (Standard Form 269), www.whitehouse.gov/OMB/grants/index.html#forms)and a final Financial Status Report shall be submitted to the Commission Project Officer within 90 days after the end of the Award Performance Period. 6.Payments Payments under this award will be made through the U.S.Department of Treasury's Automated Standard Application for Payment (ASAP)system.The ASAP system is the Denali Commission's mechanism for requesting and delivering Federal funds to financial assistance award recipients.AEA must be registered with the ASAP program in order to make draw downs.Payments will be made in accordance with 15 CFR 24.21. 7.Award Close Out Process The award closeout must be completed within 90 days of the end of the award performance period or within 90 days of the completion of the project,whichever is earlier.Project closeout includes the submission of both a final narrative report and financial status report. 8.Public Policy Laws and Assurances AEA will comply with the public policy laws and assurances on the signed,attached form SF 424D.Certain of the public policy laws and assurances are highlighted below for your reference. Lobbying:No portion of this award may be used for lobbying or propaganda purposes as prohibited by 18 U.S.C.Section 1913 or Section 607(a)of Public Law 96-74. Environmental Reviews:Based upon proposed Federal funding,project level environmental reviews in accordance with the National Environmental Policy Act (NEPA)and the National Historic Preservation Act (NHPA)are required for each project undertaken with Denali Commission funds.In accordance with NEPA and NHPA legislation,AEA will require borrowers to comply with the public policy laws and assurances.If the scope of work is changed in the future,the borrower will revisit the project level environmental reviews to determine if potential environmental concerns must be further addressed.In the interest of streamlining the project level environmental reviews and to avoid duplication of effort,any other Federal Agency environmental review process carried out by borrowers on projects,identified in this Agreement,shall meet the intent of this paragraph. "Award Conditions,Project No.0078-DC-2002-I29 Page 3 Alaska Energy Authority June 2002e 9.Project Officers &Contact Information AEA project officers are Mr.Peter Crimp for purposes of project management and Ms. Sara Fisher-Goad for purposes of financial management.The Commission project officers are Ms.Kathleen Prentki for purposes of project management and Ms.Michelle O'Leary for purposes of financial management. Denali Commission Alaska Energy Authority Ms.Kathleen Prentki 510 "L”Street,Suite 410 Anchorage,AK 99501 Voice -(907)271-1414 Fax -(907)271-1415 e-mail:kprentki@denali.gov Mr.Peter Crimp 813 W.Northern Lights Blvd. Anchorage,AK 99503 Voice -(907)269-4631 Fax -(907)269-3044 e-mail:pcrimp@aidea.org Ms.Michelle O'Leary 510 "L”Street,Suite 410 Anchorage,AK 99501 Voice -(907)271-1767 Fax -(907)271-1415 e-mail:moleary@denali.gov Ms.Sara Fisher-Goad 813 W.Northern Lights Blvd. Anchorage,AK 99503 Voice -(907)269-4623 Fax -(907)269-3044 e-mail:sfishergoad@aidea.org [ef Fin fare0078-DC-2002-129ProjectNumberFinancialAssistance Award Project Title Power Project Fund Capitalization Performance Period June 1,2002 -April 30,2007DENALICOMMISSION 510 "L"Street,Suite 410 Anchorage,Alaska 99501 (907)271-1414 (phone) (907)271-1415 (fax) www.denali.goy Recipient Name &Address State of Alaska Alaska Energy Authority 813 W.Northern Lights Anchorage,AK 99503AuthorityCFDANumber 112 Stat 1854 Phone:(907)269-3000DenaliCommissionFinanceFax:(907)269-3044OfficerCertification 90.100 NS Cost Share Distribution Table Accounting Code Denali Commission Other Contributors Total Denali Commission Base Funding $1,879,358 $0 $1,879,358 RUS Funding $1,143,975 $0 $1,143,975 $0 $0 Total $3,023,333 $0 $3,023,333 This Financial Assistance Award approved by the Federal Co-Chair of the Denali Commission is issued in triplicate and constitutes an obligation of federal funding.By signing the three documents,the Recipient agrees to comply with the Award provisions indicated below and attached.Upon acceptance by the Recipient,two signed Award documents shall be returned to the Federal Co-Chair of the Denali Commission and the Recipient shall retain the third document.If not signed and returned without modification by the Recipient within 30 days of receipt,the Federal Co-Chair may unilaterally terminate this Award.[J Special Award Conditions and Attachments [-]Line Item Budget IX]OMB Circular A-133,Audits of States,Local Governments and Indian Tribal Governments (www.whitehouse.gov/OMB/circulars/a133/a133.html) Administrative Requirements (check one) {J 15 CFR 24,Uniform Admin Requirements for Grants/Cooperative Agreements to State and Local Governments (www.access.epo.gov/nara/cfr/waisidx_99/15cfr24_99.html) []15 CER,Part 14,Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education,Hospitals,Other Nonprofit,and Commercial Organizations (www.access.gpo.gov/nara/cfr/waisidx_99/15cfr14_99.html) Cost Principles (check one) {J OMB Circular A-87,Cost Principles for State and Local Governments and Indian Tribal Governments (www.whitehouse.gov/OMB/circulars/a087/a087-allhtml)[]OMB Circular A-122,Cost Principles for Nonprofit Organizations (www.whitehouse.gov/OMB/circulars/al22/a122.html) []OMB Circular A-21,Cost Principles for Educational Institutions (www.whitehouse.gov/OMB/circulars/a021/a021 html)C]48 CFR 31.2,Contracts with Commercial Organizations Typed Name and Title Date -- Jeffrey B.Staser,Federal Co-Chair ijVA2Z¢ESe2 Typed Name and Title Date Robert Poe,Jr.,Executive Director 7/o/or Award Conditions to the Financial Assistance Award Between the Denali Commission (Commission)and Alaska Energy Authority (AEA) For FFY 2002 Power Project Fund Capitalization June 2002 Project No.0078-DC-2002-129 1.Scope of Work The scope of work under this Financial Assistance Award is to capitalize the Power Project Fund (PPF)to initially provide loans for projects identified for award under the Request for Proposals for Alaska Energy Cost Reduction Projects which was issued May 18,2001 by AEA on behalf of the Denali Commission In accordance with AS 42.45.010 and AS 42.45.060 and 3 AAC 106.100-140 AEA will provide PPF loans to eligible borrowers to construct eligible projects. Repayment of principal,and payment of interest on and any fees for loans made with funds provided under this award,will be deposited into the PPF,and utilized for any purpose authorized under AS 42.45.010,AS 42.45.060 and 3 AAC 106.100-140. 2.Award Performance Period The award performance period is June 1,2002 through the initial disbursement of all theS)loans funded with this award,but no later than April 30,2007. 3.Direct and Indirect Costs The cost principles of OMB Circular A-87 are applicable to this award.Up to 4%of the total costs under this award are allowable for the direct cost of AEA personnel time devoted to and identified on their timesheets for administration of the award.AEA direct personnel costs for loan administration exceeding the 4%limit plus indirect costs will be considered a matching contribution. 4.Budget and Program Revisions Budget and program revisions to Commission funding shall be in accordance with 1SCFR24.30. Written request by letter from the AEA Project Officer to the Commission Project Officer for concurrence is necessary for budget and program revisions where projects are added or that would result in the need for additional Commission funds. 5.Reporting Two forms of project reporting are required under this award.Note that the grant portion of these projects is funded under Project No.0048-DC-2002-I1,which encompasses reporting requirements for labor and photographic documentation beyond the reports O required under this award.Reports are due within 30 days of the end of the reporting Award Conditions,Project No.0078-DC-2002-129 Page 2 Alaska Energy Authority June 2002 period.The Commission reserves the right,at a future date,to direct AEA to provide progress reports in electronic format for posting on the Commission web page. a.Project status reports shall be submitted to the Commission project officer quarterly in the attached format. b.A Financial Status Report (Standard Form 269), www.whitehouse.gov/OMB/gerants/index.html#forms)and a final Financial Status Report shall be submitted to the Commission Project Officer within 90 days after the end of the Award Performance Period. 6.Payments The preferred method of payments under this award is through the U.S.Department of Treasury's Automated Standard Application for Payment (ASAP)system.AEA must be registered with the ASAP program in order to make draw downs.Payments will be made in accordance with 15 CFR 24.21.If payment is not made through the ASAP system, AEA must submit a "Request for Advance or Reimbursement”,Standard Form-270,to the Commission Project Officer to receive payment. 7.Award Close Out Process The award closeout must be completed within 90 days of the end of the awardSperformanceperiodorwithin90daysofthecompletionoftheproject,whichever is earlier.Project closeout includes the submission of both a final narrative report and financial status report. 8.Public Policy Laws and Assurances AEA will comply with the public policy laws and assurances on the signed,attached form SF 424D.Certain of the public policy laws and assurances are highlighted below for your reference. Lobbying:No portion of this award may be used for lobbying or propaganda purposes as prohibited by 18 U.S.C.Section 1913 or Section 607(a)of Public Law 96-74. Environmental Reviews:Based upon proposed Federal funding,project level environmental reviews in accordance with the National Environmental Policy Act (NEPA)and the National Historic Preservation Act (NHPA)are required for each project undertaken with Denali Commission funds.In accordance with NEPA and NHPA legislation,AEA will require borrowers to comply with the public policy laws and assurances.If the scope of work is changed in the future,the borrower will revisit the project level environmental reviews to determine if potential environmental concerns must be further addressed.In the interest of streamlining the project level environmental reviews and to avoid duplication of effort,any other Federal Agency environmental review process carried out by borrowers on projects,identified in this Agreement,shallOmeettheintentofthisparagraph. 8 Award Conditions,Project No.0078-DC-2002-I29 Alaska Energy Authority 9.Project Officers &Contact Information Page 3 June 2002 AEA project officers are Mr.Peter Crimp for purposes of project management and Ms. Sara Fisher-Goad for purposes of financial management.The Commission project officers are Ms.Kathleen Prentki for purposes of project management and Ms.Michelle O'Leary for purposes of financial management. Denali Commission Alaska Energy Authority Ms.Kathleen Prentki 510 "L”Street,Suite 410 Anchorage,AK 99501 Voice -(907)271-1414 Fax -(907)271-1415 e-mail:kprentki @denali.gov Mr.Peter Crimp 813 W.Northern Lights Blvd. Anchorage,AK 99503 Voice -(907)269-4631 Fax -(907)269-3044 e-mail:pcrimp @aidea.org Ms.Michelle O'Leary 510 "L”Street,Suite 410 Anchorage,AK 99501 Voice -(907)271-1767 Fax -(907)271-1415 e-mail:moleary @denali.gov Ms.Sara Fisher-Goad 813 W.Northern Lights Blvd. Anchorage,AK 99503 Voice -(907)269-4623 Fax -(907)269-3044 e-mail:sfishergoad@ aidea.org Cost Reduction Program--Round 1 Project Status 6/26/2002 Power Project Funding Fund Amount Grant Accepted by;Review Proposer Project Requested Amount Loan Amount Applicant |Complete |RUS FundsAPCPrinceofWalesIslandControls$500,000 |$318,918 |$181,082 X X X APC Skagway Line Extension $444,540 |$247,061 |$197,479 X X xX AVEC Emmonak Diesel Generator $150,000 |$36,572 |$113,428 x X X AVEC Hooper Bay Diesel Generator $150,000 |$74,230}$75,770 x X Xx AVEC Mt.Village Diesel Generator $150,000 |$86,160 |$63,840 x x x AVEC Nunapitchuk Diese!Generator $150,000 {$ 46.431|$103,569 x xX xX AVEC Selawik Switchgear $300,000 |$183,592 |$116,408 X x x AVEC St.Mary's Switchgear $300,000 |$191,372 |$108,628 X X xX AVEC Togiak Switchgear $300,000 |$160,229 |$139,771 X x X subtotal $2,444,540 |$1,344,564 |$1,099,976 1,099,976 |$1,143,975 |RUS loan +4%1,807,075 |$1,879,358 |Non-RUS loan +4%APC South Fork Hydroelectric $3,542,800 |$1,896,932 |$1,645,868 x NA $3,023,332 [total loan +4% City of Atka Atka Heat Recovery $218,000 |$56,793 |§161,207 X NA subtotal $3,760,800 |$1,953,725 |$1,807,075 Total $6,205,340 |$3,298,290 |$2,907,050 1,344,564 |}$1,398,347 |RUS grant +4%1,953,725 |$2,031,874 |Non-RUS grant +4% $3,430,221 [total grant +4% AVEC Togiak Diesel Generator $150,000 |$ 43,774|$106,226 NA Golden Valley Electric Assoc.|Chatanika Line Extension $567,000 |$-$567,000 NA Kwig Power Co.Kwig Diesel Generators $246,200 |$131,261 |$114,939 NA North Slope Borough Kaktovik Heat Recovery $418,935 |$4,931 |$414,004 NA subtotal $1,382,135 |$179,966 |$1,202,169 Total Ali Projects $7,587,475 |$3,478,255 |$°4,109,220 Current Grant Agreement current grant agreement for ECR {|$3,952,846 2,907,050 116,282 3,023,332 4%on loan fund needed for ECR #1 -grants $3,298,290 3,298,290 131,932 3,430,221 4%admin {grants reduction for grant 2002 $654,556 6,205,340 248,214 6,453,554 4%on total New Grant for PPF Loans Funds avail for PPF capitalization |$654,556 New Money needed for loans $2,252,494 Total for loans $2,907,050 kprentki financial assistance award calculations 6/25/02 Mike Harper "rom:Kathy Prentki [KPrentki@denali.gov]'ent:Tuesday,June 25,2002 2:31 PM 10:mharper@aidea.org Subject:FW:Power Project Fund Grants -First RFP '\ This lays out the amount to be moved from the current award to a new one.|quoted it on the previous message.kp From:Sara Fisher-Goad [mailto:SFisherGoad@aidea.org] Sent:Thursday,May 23,2002 12:12 PM To:Kathy Prentki;Michelle O'Leary;Al Ewing Cc:Linda MacMillan;Mike Mitchell;Jim McMillan;Mike Harper;Peter Crimp Subject:RE:Power Project Fund Grants -First RFP Department of Law suggests that we have a separate grant agreement for the capitalization of the loan fund;the Clarification and Agreement on Funding does not negate the need for the additional award.There are unique award conditions for the capitalization of a loan fund that are not covered under our current grant agreement. The legislative authorization has been approved for the PPF with a 122/02 ffective date.However,the bill with this authorization has not been signed into law yet.Since it won't be signed until sometime in June, we are looking into our options on when we can actually accept federal funds into the PPF. Since the capitalization of the fund requires the unique award conditions, we have assumed that the loan funds will be transferred along with the new agreement. For example (using Peter's project status) Current Grant agreement: Currently granted for ECR 3,952,846 Needed For ECR #1 -Grants 2,532,213 Reduction for Grant 2002*1,420,633 New grant for PPF Loans: Funds avail.For PPF Capitalization 1,420,633 New Money needed for loans 2,252,494 Total for Loans 3,673,127 *instead of reducing the grant,if there are additional funds to be "ranted 1 AEA at the same time this is reduced,we can net out the reduction by ieflecting the increase in the other project.The financial administration of the grant is easier for us if we do not have to reduce the overall 1 amount of the grant,especially if there are anticipated increases to the total overall funding amount. 'lease call me if you have any questions. Thanks.Sara -----Original Message---- From:Kathy Prentki [mailto:KPrentki@denali.gov] Sent:Thursday,May 23,2002 9:23 AM To:Sara L.Fisher-Goad (E-mail);Mike Harper (E-mail);Peter Crimp (E-mail) Cc:Michelle O'Leary;Al Ewing Subject:RE:Power Project Fund Grants -First RFP Sara, I'm confused by this message from you about the PPF funding agreement. The first installment of funding ($3.8M for projects,$100K for AEA to administer and contract for review of proposals)was provided to AEA last year,and rolled over with this year's award.The "Letter of Clarification and Agreement on Funding:Energy cost Reduction Projects,RFP's 1 and 2," signed by Bob Poe and Jeff Staser April 19th,further breaks the $3.8M into 2.66M for the grants portion,and $1.14M for the loan portion. ccording to the attached e-mail and spread sheet from Peter Crimp,you currently have enough funding available to issue the grants and loans which have been approved and accepted by the proposes.Until mid June or later,when South Fork Hydro may be ready for funding,there will not be any need for additional funds from Denali Commission.At that point,the additional funding will be added to this year's existing Financial assistance award. Has the legislative authorization been received to accept federal funds into the PPF? Kathy Prentki RRR K KEK Kh RRA KR KKK Michelle -have you had a chance to review the PPF funding agreement? We would like to finalize the agreement as soon as possible in order to go forward with the projects from the first RFP.Please let me know as soon as possible if you have any questions about the draft.Thanks. >From:Sara Fisher-Goad >Sent:Friday,May 03,2002 9:17 AM >To:Michelle Oleary (E-mail) >Cc:Mike Harper;Jodi Peterson;Jim McMillan;Peter Crimp >Subject:Power Project Fund Grants -First RFP > Michelle - >Attached,for your consideration,is a draft of proposed award conditions >pertaining to the PPF Loans for the first Energy Cost Reduction RFP. > >The financing requirements for the loan portion total $3,788,539. We >won't be ready to finalize anything until legislative authorization is >given to accept federal funds into the PPF,but we wanted you to see what >we had in mind for this portion of the ECR program. > >Give me a call if you have any questions about the attachment. Thanks. >Sara > ><<draft award conditions for PPF loans.doc>> Mike Harper "rom:Kathy Prentki [KPrentki@denali.gov]ent:Tuesday,June 25,2002 2:30 PM To:mharper@aidea.org Subject:FW:RPSU Funding Request Summary Mike if we could get a letter something like: Attached please find a list of current RPSU project funding requirementsintheamountof$1,600,000.These projects were previously shown in our AEA Funding Request revised January 3,2002,and the Denali Commission has agreed that they are ready for funding.Request this be offset against the $1,420,633 which is to be moved from Financial Assistance Award No.0048-DC-2002-I1 to a new award to provide capitalization to the PPF for the loan portion of approved Energy Cost Reduction Projects. Your words to this effect.... Thanks a lot! Kathy -----Original Message----- From:Lenny Landis [mailto:_LLandis@aidea.org] Sent:Monday,June 24,2002 9:30 AM To:Kathy Prentki "c:Kris Noonan;Mike Harper;Chris Mello;Karl Reiche ubject:FW:RPSU Funding Request Summary The current funding request includes construction funds to complete the Tuluksak powerhouse project,pre-construction procurement of fuel tanks for this years powerhouses,and Phase 1 Design and Business Plan development for the next set of proposed RPSU projects (CDRs to be developed this Fall/Winter,and procurement/construction to begin Fall 2003 with completion of projects in Fall-04/Winter-05). Let me know if you have any questions. Lenny -----Original Message----- From:Lenny Landis Sent:Thursday,June 13,2002 3:33 PM To:Karl Reiche Cc:Kris Noonan;Mike Harper;Chris Mello Subject:RPSU Funding Request Summary A.Tuluksak supplemental funding to complete project.Total: $610,000. (already approved by K.Prentki) .Pre-construction purchase of Powerhouse Intermediate fuel tanks for 5 projects at $30,000.each. Justification:We have identified the 12,000 gallon intermediate tanks 1 as equipment that would benefit from bulk purchase and being shipped on this vears barge schedule.This would allow the placement of the tanks on the dundations concurrently with the construction of the powerhouses on eir foundations.The cost estimate from the CDR's are approximately $18,000. for materials and $12,000.for shipping per tank.Total:$150,000. (Golovin,Kwigillingok,Kongiganak,Manokotak,and Newtok) C.Next batch of RPSU powerhouse projects: Phase |CDR's for 12 proposed projects (see below)at $50.000.each. Subtotal:$600,000. Business Plan Development for the above projects at $20,000.each. Subtotal:$240,000. (Notes:Phase |and Business Plan funding include AEA direct costs. Several of the 12 projects may be small scale retrofits or modular design powerhouses.Also,all of the 12 projects may not meet sustainability/cost containment criteria and may be eliminated in the Phase |Design stage.) The following villages are in line for conceptual design reports, probably to be initiated late summer of fall of this year.These are the proposed villages and the list may change as we move forward in the design and business plan phase.If they are accepted for construction,these projects would most likely start in the Fall of 2003,with completion in the Fall f 004.The numbers after the village are their ranking on the RPSU deficiency list. Chitina (2),Karluk (4),Koyukuk (1),Telida (10),Chefornak (69),Stony River (5),Platinum (6),Teller (11),Crooked Creek (also ranked 11), Sleetmute (17),White Mountain (95),Atka (14) Funding Request Totals: A.Tuluksak $610,000. B.Fuel Tanks $150,000. C.CDR's $600,000. Business Plans $240,000. RPSU Total:$1,600,000. Lenny C.Landis Project Manager,AIDEA/REG Alaska Energy Authority 813 W.Northern Lights Blvd. Anchorage,AK 99503 Ph 907-269-4684 Fax 907 269-3044 llandis@aidea.org Mike Harper "rom:Lenny Landis ent:Monday,June 24,2002 4:41 PM to:'Kathy Prentki'Ce:Kris Noonan;Jodi Peterson;Mike Harper Subject:RE:RPSU Funding Request Summary The cost savings for the six building packages we just received bids for are as follows: Last year two building packages at $121,000.each. This year the two lowest bids for six building packages are $79,000.and $92,000.each. We are checking out the lowest bid to make sure it meets all of our specifications before we accept it.But either way we are seeing a significant cost reduction for six buildings. In regards to the Manokotak fuel tank,as we move towards the final design cost estimate we will determine if the "old" 5000 gal.tank is suitable (i.e..code compliant)and sturdy enough to move.So there will be costs associated with moving it,the piping,and installing the updated level and pump controls.If it turns out the tank is not needed for this project,we would not charge it to Manokotak but hold it for the next powerhouse project. Hope this answers your questions.|will be in Golovin tomorrow for a site inspection and Business Plan Presentation. Back Wednesday morning,weather permitting. .Lenny -----Original Message---- From:Kathy Prentki [mailto:KPrentki@denali.gov] Sent:Monday,June 24,2002 10:10 AM o:Lenny Landis;Al Ewing wc:Kris Noonan;Mike Harper;Chris Mello;Karl Reiche Subject:RE:RPSU Funding Request Summary Lenny--this sounds reasonable at first blush,except you need to look at the Manokotak tank again--The CDR verbal descriptions for Manokotak discuss the new,12,000-gallon intermediate fuel tank for the project (same as the other three sites submitted with it).The concept drawings and estimate for Manokotak are based on relocating an existing 5000-gallon tank. |don't know what your final design is coming up with there.In the interest of sharpening your pencils on those RPSU's to try to get their costs closer to the benchmarks as you develop the final designs--as we asked you to do--I would expect the cheaper solution rather than new. In that vein,were you able to achieve any cost savings in buying the building packages in bulk? Kathy -----Original Message----- From:Lenny Landis [mailto:LLandis@aidea.org] Sent:Monday,June 24,2002 9:30 AM To:Kathy Prentki Cc:Kris Noonan;Mike Harper,Chris Mello;Karl Reiche "ubject:FW:RPSU Funding Request Summary ihe current funding request includes construction funds to complete the Tuluksak powerhouse project,pre-construction procurement of fuel tanks for this years powerhouses,and Phase 1 Design and Business Plan development for the next set of proposed RPSU projects (CDRs to be developed this Fall/Winter,and procurement/construction to begin Fall 2003 with ompletion vf projects in Fall-04/Winter-05). Let me know if you have any questions. Lenny From:Lenny Landis Sent:Thursday,June 13,2002 3:33 PM To:Karl Reiche Cc:Kris Noonan;Mike Harper;Chris Mello Subject:RPSU Funding Request Summary A.Tuluksak supplemental funding to complete project.Total: $610,000. (already approved by K.Prentki) B.Pre-construction purchase of Powerhouse Intermediate fuel tanks for 5 projects at $30,000.each. Justification:We have identified the 12,000 gallon intermediate tanks as equipment that would benefit from bulk purchase and being shipped on this vears barge schedule.This would allow the placement of the tanks on the undations concurrently with the construction of the powerhouses on eir foundations.The cost estimate from the CDR's are approximately $18,000. for materials and $12,000.for shipping per tank.Total:$150,000. (Golovin,Kwigillingok,Kongiganak,Manokotak,and Newtok) C.Next batch of RPSU powerhouse projects: Phase!CDR's for 12 proposed projects (see below)at $50.000.each. Subtotal:$600,000. Business Plan Development for the above projects at $20,000.each. Subtotal:$240,000. (Notes:Phase |and Business Plan funding include AEA direct costs. Several of the 12 projects may be small scale retrofits or modular design powerhouses.Also,all of the 12 projects may not meet sustainability/cost containment criteria and may be eliminated in the Phase |Design stage.) The following villages are in line for conceptual design reports, probably to be initiated late summer of fall of this year.These are the proposed villages and the list may change as we move forward in the design and business plan phase.If they are accepted for construction,these projects would most likely start in the Fall of 2003,with completion in the Fall of 004.The numbers after the village are their ranking on the RPSU eficiency list. Chitina (2),Karluk (4),Koyukuk (1),Telida (10),Chefornak (69),Stony River (5),Platinum (6),Teller (11),Crooked Creek (also ranked 11), 2 Sleetmute (17),White Mountain (95),Atka (14) Funding Request Totals: .Tuluksak $610,000. wv.Fuel Tanks $150,000. C.CDR's $600,000. Business Plans $240,000. RPSU Total:$1,600,000. Lenny C.Landis Project Manager,AIDEA/REG Alaska Energy Authority 813 W.Northern Lights Blvd. Anchorage,AK 99503 Ph 907-269-4684 Fax 907 269-3044 llandis@aidea.org 'Mike Harper "rom:Lenny Landis ient:Monday,June 24,2002 9:30 AM 10:'Kathleen Prentki /Denali C.' Ce:Kris Noonan;Mike Harper;Chris Mello;Kar!Reiche Subject:FW:RPSU Funding Request Summary The current funding request includes construction funds to complete the Tuluksak powerhouse project,pre-construction procurement of fuel tanks for this years powerhouses,and Phase 1 Design and Business Plan development for the next set of proposed RPSU projects (CDRs to be developed this Fall/Winter,and procurement/construction to begin Fall 2003 with completion of projects in Fall-04/Winter-05). Let me know if you have any questions. Lenny -----Original Message----- From:Lenny Landis Sent:Thursday,June 13,2002 3:33 PM To:Karl Reiche Ce:Kris Noonan;Mike Harper;Chris Mello Subject:RPSU Funding Request Summary A.Tuluksak supplemental funding to complete project.Total:$610,000.(already approved by K.Prentki) B.Pre-construction purchase of Powerhouse Intermediate fuel tanks for 5 projects at $30,000.each. lustification:We have identified the 12,000 gallon intermediate tanks as equipment that would benefit from bulk purchase nd being shipped on this years barge schedule.This would allow the placement of the tanks on the foundations oncurrently with the construction of the powerhouses on their foundations.The cost estimate from the CDR's are approximately $18,000.for materials and $12,000.for shipping per tank.Total:$150,000.(Golovin,Kwigillingok, Kongiganak,Manokotak,and Newtok) C.Next batch of RPSU powerhouse projects:Phase|CDR's for 12 proposed projects (see below)at $50.000.each.Subtotal:$600,000.Business Plan Development for the above projects at $20,000.each.Subtotal:$240,000. (Notes:Phase |and Business Plan funding include AEA direct costs.Several of the 12 projects may be small scale retrofits or modular design powerhouses.Also,all of the 12 projects may not meet sustainability/cost containment criteria and may be eliminated in the Phase |Design stage.) The following villages are in line for conceptual design reports,probably to be initiated late summer of fall of this year. These are the proposed villages and the list may change as we move forward in the design and business plan phase.If they are accepted for construction,these projects would most likely start in the Fall of 2003,with completion in the Fall of 2004.The numbers after the village are their ranking on the RPSU deficiency list. Chitina (2),Karluk (4),Koyukuk (1),Telida (10),Chefornak (69),Stony River (5),Platinum (6),Teller (11),Crooked Creek (also ranked 11),Sleetmute (17),White Mountain (95),Atka (14) Funding Request Totals: A.Tuluksak $610,000. B.Fuel Tanks $150,000. C.CDR's $600,000. Business Plans $240,000. RPSU Total:$1,600,000. Lenny C.Landis Project Manager,AIDEA/REG Alaska Energy Authority 6/24/2002 June 2002 request.xis June Funding Request Item Description Amount Remarks BFU Golovin,Ph2 Final Design CDR completed,final design almost complete,will White Mountain BOP request Ph 3 construction $in Fall 2002. RPSU Supplemental funding to complete construction of Tuluksak $610,000|powerhouse project Pre-construction purchase of 12,000 gal. Golovin,Kwigillingok,powehouse intermediate fuel tanks for inclusion in Kongiganak,Manokotak,&the Falls barge schedule ($18,000.Material plus Newtok $150,000/$12,000.shipping Each) 12 Proposed RPSU projects for 2003/2004 Design Phase |CDRs $600,000!construction ($50,000.per CDR) Business Plan 12 Proposed RPSU projects for 2003/2004 Development $240,000|construction ($20,000.per Business Plan) RPSU Total:$1,600,000 ° Mike Harper =rom:Lenny Landis Sent:Monday,June 24,2002 4:41 PM To:'Kathy Prentki' Cc:Kris Noonan;Jodi Peterson;Mike Harper Subject:RE:RPSU Funding Request Summary The cost savings for the six building packages we just received bids for are as follows: Last year two building packages at $121,000.each. This year the two lowest bids for six building packages are $79,000.and $92,000.each. We are checking out the lowest bid to make sure it meets all of our specifications before we accept it.But either way we are seeing a significant cost reduction for six buildings. In regards to the Manokotak fuel tank,as we move towards the final design cost estimate we will determine if the "old" 5000 gal.tank is suitable (i.e..code compliant)and sturdy enough to move.So there will be costs associated with moving it,the piping,and installing the updated level and pump controls.If it turns out the tank is not needed for this project,we would not charge it to Manokotak but hold it for the next powerhouse project. Hope this answers your questions.|will be in Golovin tomorrow for a site inspection and Business Plan Presentation. Back Wednesday morning,weather permitting. Lenny -----Original Message----- From:Kathy Prentki [mailto:KPrentki@denali.gov] Sent:Monday,June 24,2002 10:10 AM 'o:Lenny Landis;Al Ewing wc:Kris Noonan;Mike Harper;Chris Mello;Karl Reiche Subject:RE:RPSU Funding Request Summary Lenny--this sounds reasonable at first blush,except you need to look at the Manokotak tank again--The CDR verbal descriptions for Manokotak discuss the new,12,000-gallon intermediate fuel tank for the project (same as the other three sites submitted with it).The concept drawingsandestimateforManokotakarebasedonrelocatinganexisting 5000-gallon tank. |don't know what your final design is coming up with there.In the interest of sharpening your pencils on those RPSU's to try to get their costs closer to the benchmarks as you develop the final designs--as we asked you to do--]would expect the cheaper solution rather than new. In that vein,were you able to achieve any cost savings in buying the building packages in bulk? Kathy -----Original Message----- From:Lenny Landis [mailto:_LLandis@aidea.org] Sent:Monday,June 24,2002 9:30 AM To:Kathy Prentki Cc:Kris Noonan;Mike Harper;Chris Mello;Karl Reiche Subject:FW:RPSU Funding Request Summary rhe current funding request includes construction funds to complete the Tuluksak powerhouse project,pre-construction procurement of fuel tanks for _.this years powerhouses,and Phase 1 Design and Business Plan developmentfor the next set of proposed RPSU projects (CDRs to be developed this Fall/Winter,and procurement/construction to begin Fall 2003 with 'completion f projects in Fall-04/Winter-05). Let me know if you have any questions. Lenny -----Original Message----- From:Lenny Landis Sent:Thursday,June 13,2002 3:33 PM To:Karl Reiche Cc:Kris Noonan;Mike Harper;Chris Mello Subject:RPSU Funding Request Summary A.Tuluksak supplemental funding to complete project.Total: $610,000. (already approved by K.Prentki) B.Pre-construction purchase of Powerhouse Intermediate fuel tanks for 5 projects at $30,000.each. Justification:We have identified the 12,000 gallon intermediate tanks as equipment that would benefit from bulk purchase and being shipped on this years barge schedule.This would allow the placement of the tanks on the oundations concurrently with the construction of the powerhouses on ieir foundations.The cost estimate from the CDR's are approximately$18,000., for materials and $12,000.for shipping per tank.Total:$150,000. (Golovin,Kwigillingok,Kongiganak,Manokotak,and Newtok) C.Next batch of RPSU powerhouse projects: Phase |CDR's for 12 proposed projects (see below)at $50.000.each. Subtotal:$600,000. Business Plan Development for the above projects at $20,000.each. Subtotal:$240,000. (Notes:Phase |and Business Plan funding include AEA direct costs. Several of the 12 projects may be small scale retrofits or modular design powerhouses.Also,all of the 12 projects may not meet sustainability/cost containment criteria and may be eliminated in the Phase |Design stage.) The following villages are in line for conceptual design reports, probably to be initiated late summer of fall of this year.These are the proposed villages and the list may change as we move forward in the design and business plan phase.If they are accepted for construction,these projects would most likely start in the Fall of 2003,with completion in the Fall of 004.The numbers after the village are their ranking on the RPSU eficiency list. Chitina (2),Karluk (4),Koyukuk (1),Telida (10),Chefornak (69),Stony River (5),Platinum (6),Teller (11),Crooked Creek (also ranked 11), 2 _.Sleetmute (17),White Mountain (95),Atka (14) Funding Request Totals: .Tuluksak $610,000. .Fuel Tanks $150,000. C.CDR's $600,000. Business Plans $240,000. RPSU Total:$1,600,000. Lenny C.Landis Project Manager,AIDEA/REG Alaska Energy Authority 813 W.Northern Lights Blvd. Anchorage,AK 99503 Ph 907-269-4684 Fax 907 269-3044 llandis@aidea.org Fj ..Project Number 0048-DC-2002-I1 -Amendment No.1inancialAssistance Project Tit!Bulk Fuel Consolidation Upgrades &Award roject Aille Power Generation DENALI COMMISSION Performance Period February 1,2002 -January 31,2003 510 "L"Street,Suite 410 Recipient Name &AddressAnchorage,Alaska 99501 (907)271-1414 (phone)State of Alaska (907)271-1415 (fax)Alaska Energy Authority _www.denali.gov 813 W.Northern Lights Anchorage,AK 99503 Authority CFDA Number Phone:(907)269-3000 112 Stat 1854 90.100 Fax:(907)269-3044 Current Obligations Cumulative Obligations Denali Commission Base Funding $7,609,106 Denali Other Totals RUS Funding 2,293,200 Commission contributors Denali Commission Funds Authorized Current Funding for Carry Forward $43,936,369 $9,902,306 $0 $9,902,306 aie Current Denali Commission $53,838,675 Funding from prior $43,936,369 $18,010,563 $61,946,932udgetperiods Funding Totals $53,838,675 $18,010,563 $71,849,238 Funds Available and Apportioned by C DC Expenditures as OMB El of 1/31/02 $18,707,823.35 This Financial Assistance Award approved by the Federal Co-Chair of the Denali Commission is issued in triplicate and constitutes an obligation of federal funding.By signing the three documents,the Recipient agrees to comply with the Award provisions indicated below and attached.Upon acceptance by the Recipient,two signed Award documents shall be returned to the Federal Co-Chair of the Denali Commission and the Recipient shall retain the third document.If not signed and returned without modification by the Recipient within 30 days of receipt,the Federal Co-Chair may unilaterally terminate this Award. Kl Special Award Conditions and Attachments CG Line Item Budget[x]OMB Circular A-133,Audits of States,Local Governments and Indian Tribal Governments (www.whitehouse.gov/OMB/circulars/al 33/a133.html) Administrative Requirements (check one)[x]15 CFR 24,Uniform Admin Requirements for Grants/Cooperative Agreements to State and Local Governments (www.access.gpo.gov/nara/cfr/waisidx_99/15cfr24_99.html) []15 CFR,Part 14,Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education,Hospitals,Other Nonprofit,and Commercial Organizations (www.access.gpo.gov/nara/cfr/waisidx 99/15cfr14_99.html) Cost Principles (check one)[<]OMB Circular A-87,Cost Principles for State and Local Governments and Indian Tribal Governments (www.whitehouse.gov/OMB/circulars/a087/a087-allhtml)(-]OMB Circular A-122,Cost Principles for Nonprofit Organizations (www.whitehouse.gov/OMB/circulars/al122/a122.html) LJ]OMB Circular A-21,Cost Principles for Educational Institutions (www.whitehouse.gov/OMB/circulars/a021/a021.html) []48 CFR 31.2,Contracts with Commercial Organizations Authorjzed Official-Denali Commission Typed Name and Title Datea-Jeffrey B.Staser,Federal Co-Chair Uf,ZaftG2 Signature Signatufy of/Authoriz Typed Name and Title Date Robert Poe,Jr.,Executive Director [re./o 2 Rev:01/02 . Alaska Energy Authority 0048-DC-2002-I1 Amendment 1 Denali Commission Total Project RUS Funding |Funding Funding RPSU final design Golovin RPSU 135,000 135,000 Manokotak RPSU 135,000 135,000 Kwigillingok RPSU 135,000 135,000 Kongiganak RPSU 135,000 135,000 Amautluak Distribution 135,000 135,000 | Sub-Total 675,000 RPSU 2002 Program procurement Building kits 5 @ $130K 650,000 650,000 Foundation kits 5 @ $70K 350,000 350,000 Atmautluak Distribution System:poles,pilings, transformers 130K, shipping $350K 480,000 480,000 CM procurement management,ispection & receiving,6 sites,LS 50,000 50,000 Sub-Total 1,530,000 - Bulk Fuel Construction Buckland BF overruns 2,333,072 2,333,072 Nikolski BF overruns 151,000 151,000 Port Heiden BF 1,793,000 1,793,000 Chenega Bay BF 1,074,432 1,074,432 Egegik 385,300 385,300 Sub-Total 5,736,804 Small Scale Retrofit** Alatna BF**464,000 464,000 Alakaket power plant move '550,000 550,000 Aleknagik BF 565,644 565,644 Sub-Total 1,579,644 Sub total for projects 2,205,000 7,316,448 9,521,448 AEA Direct Admin @4%88,200 292,658 380,858 Total Funding for 19 April 2,293,200 7,609,106 9,902,306 4/19/2002 ha) Award Conditions to the Financial Assistance Award FFY 2002 DRAFT March 11,2002 Power Project Fund Capitalization Alaska Energy Authority (AEA) 1.Scope of Work The scope of work under this Financial Assistance Award is to capitalize the Power Project Fund (PPF)to provide loans for energy cost reduction projects. In accordance with AS 42.45.010-060 and 3 AAC 106.100-900 AEA will provide PPF loans to Alaska communities or local utilities to construct the projects. Repayment of principal and interest of energy cost reduction program loans will be deposited into the PPF.Any loan fees associated with the PPF will also be deposited into the PPF. 2.Award Performance Period The award performance period is May 1,2002 through the initial disbursement of the loans funded with this award,but no later than April 30,2007. 3.Direct and Indirect Costs The cost principles of OMB Circular A-87 are applicable to this award.The direct cost of AEA personnel time devoted to and identified on their timesheets for the performance of the award,are allowable.In addition,up to 4%of the total costs under this award are allowable for the direct cost of AEA personnel time devoted to and identified on their timesheets for administration of the award.AEA direct personnel costs for grant administration exceeding the 4%limit plus indirect costs will be considered a matching contribution. 4.Budget and Program Revisions Budget and program revisions to Commission funding shall be in accordance with 1SCFR24.30. Written request by letter from the AEA Project Officer to the Commission Project Officer for concurrence is necessary for budget and program revisions where projects are added or deleted or that would result in the need for additional Commission funds. 5.Reporting Two forms of project reporting are required under this award.Reports are due within 30 days of the end of the reporting period.The Commission reserves the right,at a future date, to direct AEA to provide progress reports in electronic format for posting on the Commission web page. Award Conditions Page 2 ™Alaska Energy Authority February 1,2002 a.Project status reports shall be submitted to the Commission project officer quarterly in the attached format.(JIM TO PROVIDE PROPOSED FORMAT) b.A Financial Status Report (Standard Form 269), www.whitehouse.gov/OMB/grants/index.html#forms)and a final Financial Status Report shall be submitted to the Commission Project Officer within 90 days after the end of the Award Performance Period. 6.Payments Payments under this award will be made through the U.S.Department of Treasury's Automated Standard Application for Payment (ASAP)system.The ASAP system is the Denali Commission's mechanism for requesting and delivering Federal funds to financial assistance award recipients.Your organization must be registered with the ASAP program in order to make draw downs.Payments will be made in accordance with 15 CFR 24.21. 7.Award Close Out Process The award closeout must be completed within 90 days of the end of the award performance period or within 90 days of the completion of the project,whichever is earlier.Project closeout includes the submission of both a final narrative report and financial status report. Recipients must also draw down any remaining funds for expenditures under this award during this 90-day period. 8.Public Policy Laws and Assurances AEA will comply with the public policy laws and assurances on the signed,attached form SF 424D.Certain of the public policy laws and assurances are highlighted below for your reference. Local Labor and Small,Minority Owned and Disadvantaged Businesses:To the maximum extent feasible,considering applicable laws,AEA shall accomplish the work of this Agreement utilizing local labor and small,minority owned and disadvantaged businesses. Lobbying:No portion of this award may be used for lobbying or propaganda purposes as prohibited by 18 U.S.C.Section 1913 or Section 607(a)of Public Law 96-74. Environmental Reviews:Based upon proposed Federal funding,project level environmental reviews in accordance with the National Environmental Policy Act (NEPA)and the National Historic Preservation Act (NHPA)are required for each project undertaken with Denali Commission funds.In accordance with NEPA and NHPA legislation,AEA shall address all potential environmental concerns (specific and cumulative effects)associated with the projects,identified in this Agreement,in consultation with applicable Federal,State,and local authorities.If the scope of work is changed in the future,then AEA will revisit the project level environmental reviews to determine if potential environmental concerns must be further addressed.In the interest of streamlining the project level environmental reviews and to avoid duplication of effort,any other Federal Agency environmental review process Award Conditions '*Alaska Energy Authority Page 3 February 1,2002 carried out by AEA on projects,identified in this Agreement,shall meet the intent of this paragraph. 9.Project Officers &Contact Information AEA project officers are Mr.Peter Crimp for purposes of project management and Ms.Sara Fisher-Goad for purposes of financial management.The Commission project officers are Ms.Kathleen Prentki for purposes of project management and Ms.Michelle O'Leary for purposes of financial management. Denali Commission Alaska Energy Authority Ms.Kathleen Prentki 510 "L”Street,Suite 410 Anchorage,AK 99501 Voice -(907)271-1414 Fax -(907)271-1415 e-mail:kprentki@denali.gov Mr.Peter Crimp 813 W.Northern Lights Blvd. Anchorage,AK 99503 Voice -(907)269-4631 Fax -(907)269-3044 e-mail:pcrimp@aidea.org Ms.Michelle O'Leary 510 "L”Street,Suite 410 Anchorage,AK 99501 Voice -(907)271-1767 Fax -(907)271-1415 e-mail:moleary@denali.gov Ms.Sara Fisher-Goad 813 W.Northern Lights Blvd. Anchorage,AK 99503 Voice -(907)269-4623 Fax -(907)269-3044 e-mail:sfishergoad@aidea.org 02/19/2002 15:58 FAX 807 2711450 DENALI COMMISSION 12}002 DENALI COMMISSION 510 'L'Street,Suite 410 Anchorage,Alaska 99501 (907)271-1414 Fax (907)271-1415 Toll Free (888)480-4321 www,denali.gov February 19,2002 Mike Harper Deputy Director Rural Energy Alaska Industrial Development &Export Authority 813 W.Northern Lights Blvd. Anchorage,Alaska 99503-2495 Subject:Quarterly Report Submission Dear Mik: Looking over your quarterly report dated December 31,2001 I can only conclude that the report is suffering from neglect.It appears your accounting people are doing their job of updating the numbers.It also appears your project managers have not even looked at the report.;The report is required to provide a brief narrative on the status of each project. Those narratives are full of outdated schedule information and inconsistencies.For example,'he December 31 report lists tasks to be completed or started before December 31.One would think since the report is dated December 31,and submitted a month Jater that those entries would be known with certainty. The "on schedule/on budget”columnis uniformly marked "Y/Y.”Your project budgetsandschedulesareapparentlyroutinelychangedtoreflectthecurrentstatus:therefore nothingis ever behind schedule,or out of budget.The requirement hereis a fixed schedule znd budget that progress can be measured against.An "N”answer should prompt a supplemental report to explain why that project is not on schedule or not on budget.To ilustrate the importance of this matter,note the Tuluksak project is reported to be on schedule and on budget with the budget stated as $1,488,500.Simultaneously, your project manager is struggling with a major cost over-run and attempting to increase this budget to $2 million. L ask that you put mide efidaii iniv ive quarierly reporting to the Commission.The quarterly reporting we have been receiving is of little or no use in communicating to us the real progress and status of your projects,or of recognizing potential problems.Please correct the:most recent report and resubmit by March 15,2002. Sincerely,"AthPreteKathy>Prenth:Energy Project Manager 02/18/2002 15:01 FAX 907 2711450 DENALI COMMISSION 002 to DENALI]COMMISSION 510 'L'Street,Suite 410 Anchorage,Alaska 99501 (907)271-1414 Fax (907)271-1415 Toll Free (888)480-4321 www.denali.gov February 19,2002 Mike Harper,Deputy Director -Rural Energy Alaska Industrial Development &Export Authority 813 W.Northern Lights Blvd. Anchorage,Alaska 99503-2495 Subject:Tuluksak Cost Overruns Dear Mike: Following up our meeting Friday,February 15,on the Tuluksak power plant project we note in your December 31 quarterly report that the project is well advanced into construction,with site work complete,the building foundation complete and construction of the building commencing in March with project completion in the summer.I presume that means all of the major materials are either on site or on order. The cost containment policy is intended primarily to address costs at the concept and final design stages,not in the construction phase.Tuluksak appears too far complete to do much to contain costs at this late stage.This is not a project subject to the cost containment policy so much as a project that has over-run its budget. According to your December 31 quarterly report the project budget is $1,488,500 and the project is on schedule and on budget.That budget comports with the cost containment benchmark guidelines with the allowance of $500,000 above the benchmark for the extraordinary site development costs at Tuluksak.The benchmark of $942,500 ($2,900 per kW for a 325 kW power plant)plus $500,000 would come to $1,442,500. However,the attached spreadsheet,based on the information you provided us Friday, indicates you are now estimating a total project cost of $2,024,265.You have requested an additional $610,000 of funding to complete the project.That additional fanding stil] is not justified by the information you provided.We ask that you take another look at 02/19/2002 15:03 FAX 907 2711450 DENALI COMMISSION oa3 Mike Harper 2 Tuluksak 'Cost Overruns your cost estimates and provide us with an updated cost estimate based on the actual] costs incurred to date and estimate to completion along with the detailed back-up work sheets that include your detailed actual/estimated cost of the materials,equipment rental, construction contracts,freight,and man-hours with the unit costs per man-hour.At this juncture we find that we will have to undertake a more detaiJed analysis to determine the adequacy of the justification for such extremely high project costs. When you provide your further,detajJed estimate to completion,please include the accounting records to document costs expended to date on this project,and any material or other funding obligated for this project which has not yet been paid. We need to learn all we can from this project to prevent similar overruns on other projects.One primary consideration will likely be design decisions in the early stages that drive costs above the benchmarks.For example,in regrouping your cost estimates we find your total estimated cost for the 1,440 square foot building shel]on a foundation comes tc a grand total of about $725,565 or $504 per square foot.While the policy does not provide benchmark guidelines for the cost of empty power plant building shells on a foundation (no wiring or plumbing or mechanical included),this appears to be an exorbitant price.If the building is indeed that expensive,other design alternatives such as prefabricated skidded-modular power plant designs should have been considered. '[Jook forward to resolving this issue,so we can move forward in completing this project this year.The business plan is the other key to further construction funding for Tuluksak. It must te annotated to the final design costs,and adjustments made to the O&M and R&R colection rates to capture any increased collection rates due to the higher construction costs. Sincerely, Kathy Prentki Energy Project Manager Attachment:spreadsheet 02/18/2002 15:04 FAX 907 2711450 Material Equipment Rental Construc:ion Contracts Labor Freight Other Total Units Unit Cost DENALI COMMISSION Tuluksak Power Plant 'Power Plant (bldg +gen systern) Unit Cost Power Plant Benchmark AIDEA Cost Estimate February 19,2002 Site Bldg Gen System Dist System Total $285,000 $547,400 $24,500 $856,900 $62,000 $62,000$427,500 $48,500 $476,000 $280,265 $168,000 $7,500 $455,765$100,000 $45,000 $5,000 $150,000 $11,800 $11,800 $23,600 $427,500 $725,565 $834,200 $37,000 $2,024,265 1440 SqFt.325 KW 325 kW $504 $2,567 $6,229 Per Sq.Ft.Per kW Per kW $1,559,765 $4,799 Per KW $942,500 $2,900 Per KW Power Plant over Benchmark $617,265 Above benchmark 165% oo Award Conditions to the Financial Assistance Award Amendment NetoPrejeet-No-0026-DE-2001-I8 Project 2002 FY20042002 Bulk Fuel Consolidation Upgrades &Power Generation Alaska Energy Authority 2-1.The scope of work under this Financial Assistance Award (the "Agreement”)is to perform the planning and construct the projects listed on the attached spreadsheet.Any surplus of funds (on one or more of the projects funded under this Agreement)may be used on other projects identified under this Agreement that may be experiencing a project shortfall.The intent is not to set aside a specific sum of Commission funding to a particular community,but rather that the projects on the attached spreadsheet are all completed successfully.Shifting of funding between project line items by AEA is allowed provided there is no increase in the total funding provided by the Commission, and TAPL money may be used only for Bulk Fuel projects...The Commission Project Officer is to be copied on all revisions to the spreadsheet. 32,Budget revisions to Commission funding shall be in accordance with 1SCFR24.30 (c)(2).Written request by letter from the AEA Project Officer to the Commission Project Officer for concurrence is necessary for budget revisions where projects are added or deleted or that would result in the need for additional Commission funds. 43.The Project Officers for AEA are Mr.Chris Mello for purposes of project design and construction and Ms.Sara Fisher-Goad for purposes of financial management.The Project Officer for the Denali Commission is Ms.Kathleen Prentki. 5-4.AEA shall submit written progress reports to the Commission Project Officer quarterly (January/March,April/June,etc.).The reports are due within 30 calendar days of the end of the quarter.Interim reports are required in the event of significant project events that may extend the project schedule and/or impact the project budget.Quarterly progress reports shall include a narrative summary of the project status and accomplishments to date,and address the following questions:is the project on schedule,is the project on budget,and what actions are planned to address any project problems.These progress reports shall be sent to: Denali Commission 510 "L”Street,Suite 410 Award Conditions,Amendmenttte Project No0026-DE-2061-182002 Page 2 Alaska Energy Authority AUsUSE 2004Draft as of 9 a.m.,November 1,2001 Anchorage,AK 99501 The Commission reserves the right to direct AEA to provide the progress reports in electronic format for posting on the Commission web page. 6-5.Four forms of project financial and labor reports are required.| A.Project financial status reports shall be submitted to the Commission Project Officer quarterly (included as part of the quarterly progress reports).For each project that includes funding from the Denali Commission,the quarterly financial status report shall include the following: i.the total project budget il.the project schedule with milestone dates for concept design,final design and | construction iil,the total amount of Denali Commission funds committed to the project iv.the total project expenditures as of the end of the most recent quarter V.the total expenditure of Denali Commission funds for the project as of the end of the most recent quarter Vi.the percentage of expenditures to the total budget;and vii.a project performance analysis on project line items,as defined by the AEA, showing budget costs compared to actual expenditures and obligations to date versus work performed to date (for each line item). €B_A Financial Status Report (Standard Form 269 -| www.whitehouse.gov/OMB/grants/index.html#forms)shall be submitted to the Commission Project Officer within 90 days after the end of each anniversary of the initial award date,and a final Financial Status Report shall be submitted within 90 days after the end of the Award Performance Period. D.C._A Labor Type,Residence,and Wage Report shall be submitted to the Commission | Project Officer at a minimum of two times annually.At a minimum,these two reports must be submitted on or near August 1*and December 1*each year to correspond with the Alaska construction season.A Labor Type,Residence,and Wage Report must included the following information by construction project for any person employed on the construction of that project:position,place of primary residence,first check date,last check date,rate of pay per hour,payroll earnings from inception of project to date. Award Conditions,Amendment tePreject No-0026-DE-2001-182002 Page 3 Alaska Energy Authority August 2001Draft as of 9 a.m.,November 1,2001 46. &7. 9-8. 409. 4410. Indirect costs (see OMB Circular A-87)are net-allowable under this Agreement, provided that in the aggregate the indirect costs do not exceed 4%of the direct costs incurred.Indirect costs in excess of the 4%maximum are not reimbursable and will be considered matching funds to this award. To receive payment,the Authority must submit a "Request for Advance or Reimbursement”,Standard Form-270, www.whitehouse.gov/OMB/grants/index.html#forms,to the Commission Project Officer. ,Itiis expected that theAuthoritywillforecastbyletterorrspreadsheetformat,Commission funds or working capital advances needed on a monthly (or as needed)basis for each project.The Commission reserves the right to consolidate project level payments into one payment. This does not preclude more frequent Commission payments,then monthly,given project specific needs.Commission funds reeeived-as-advanee-payment-shall be subject to interest provisions @as sett forth in 3 1CFR205.12.The Commission Project Offer may other documentation--The Commission reserves the right tto prohibit further payments totheAuthority,at any time,if discrepancies involving the advanee-account funds arise, until such time that the discrepancies are resolved to the satisfaction of the Commission. Pay requests for Authority-administrative-AEA indirect costs shall be on a separate Standard Form -270 (quarterly)from project pay requests. To the maximum extent feasible,considering applicable laws,AEA shall accomplish the work of this Agreement utilizing local labor and small,minority owned and disadvantaged businesses. No portion of this award may be used for lobbying or propaganda purposes as prohibited by 18 U.S.C.Section 1913 or Section 607(a)of Public Law 96-74. AEA agrees to comply with the Commission's private enterprise policy,project prioritization policy,pipelines and dispensers policy,and project design capacity policy, a-drafts of which is-are attached hereto and made a part hereof. Award Conditions,Amendmentt_toPreject-Ne.0026-DE-2001-182002 Page 4 Alaska Energy Authority August 2001Draft as of 9 a.m.,November 1,2001 42-11.___Based upon proposed Federal funding,project level environmental reviews in | accordance with the National Environmental Policy Act (NEPA)and the National Historic Preservation Act (NHPA)are required for each project undertaken with Denali Commission funds.In accordance with NEPA and NHPA legislation,AEA shall address all potential environmental concerns (specific and cumulative effects)associated with the projects,identified in this Agreement,in consultation with applicable Federal,State,and local authorities.If the scope of work is changed in the future,then AEA will revisit the project level environmental reviews to determine if potential environmental concerns must be further addressed.In the interest of streamlining the project level environmental reviews and to avoid duplication of effort,any other Federal Agency environmental review process carried out by AEA on projects,identified in this Agreement,shall meet the intent of this paragraph. 44.12,The electric utility systems and bulk fuel systems receiving the benefit of Commission | funding must be sustainable.As a precondition of construction funding,a project must meet the attached sustainability criteria. 45-13.__There are many issues such as facility location,project ownership,construction costs,_| and compliance with sustainability criteria that require resolution prior to proceeding with full design and construction.If project issues cannot be resolved in a reasonable time frame,the Commission expects AEA to move down the priority list(s)to projects that are ready to proceed to full design and construction.It is expected that the Commission and AEA Project Officers will meet quarterly to review the progress of projects and collaboratively determine if reasonable progress is being made and what steps should be taken,if any,to deal with new developments encountered in the design and construction process. 16.14.Photographic documentation of project progress shall be provided with the | quarterly reports.For full-fledged,active construction projects,photo documentation shall include a minimum of five,dated photos per quarter of current project status,such that a complete record of the construction is maintained over time,from "before,”showing the situation before the start of construction,to "during”showing work proceeding on the project,and "after”to show the finished project.For minor repair and O&M projects,pictures should be provided of before and after to the extent possible.Photos may be provided as photo quality,3x5 Award Conditions,Amendment teProeject-No-0026-DE-2001-182002 Page 5 Alaska Energy Authority August 2004Draft as of 9 a.m.,November 1,2001 prints with negative for each picture,and/or print quality electronic photos (digital images). NOV-U8-U1 THU 04:5 PM FAK NO. - p STATE OF ALASKA DEPARTMENT OF HEALTH &SOCIAL SERVICES DIVISION OF PUBLIC ASSISTANCE | P.O.BOX 110640 JUNEAU,AK 99811-0640 »Ul TELEPHONE:(907)465-3347/FAX:(907)465-5154 DATE:__£77S/O? TO:Jolene Crve FAX#2 9-3 044 #OF PAGES FOLLOWING:(@ FROM:JIMNOROLUND 465-2680DIRECTORLpRE:fyCHO COMMENTS: Wit abso put a Copy,Lin.YRC, mails,albne with Aa ALpot Aeon (plawo, _L\ aur Y26§O ' "PLEASE CALL (907)465-2680 IF F:\X IS NOT COMPLETELY RECEIVED*** > SATURDAY,NOVEM..«10,2004 =WORK:Subcommittee hears recommendations for change. By LISA DEMER Anchorage Daily News More than four years afterleslatorsandstateleaders Ss {up Alaska's welfare sys-tem,they are looking at over-hauling it in ways that could mean more help to parentsworkingatlow-wage jobs butthatalsocouldtreatthosewho refuse to look for work more harshly. 'On Friday,ideas for retool- ing the system were laid out before a Senate subcommittee by an Oregon-based policygroupthathasstudiedAlas- ka's welfare system. The assessment by theAmericanInstituteforFull Employment,funded by awealthyOregonbusinessman, fare overhaulIsproposedfoundIIthestateODSagoodstartatmoldinga"work-first” system that encourages recip-ients to join the work force and learn employment skills on the job.But some gaps and loop-holes remain,consultant Sandie Hoback told legislatorsindescribingabouttwodozen recommendations for change. "Tt is important to point outthatalthoughthepurposeofthisreportistorecommend changes,we were for the most part very impressed with both the design of Alaska's welfare reform and with Alaska's at- tempts to implement a pro-gram based on work-first prin-ciples,”the 46-page reportsaid. Among the ideas: *Parents who refuse to look for work or participate inactivitiessuchason-the-job See Page B-4,WELFARE 1 t new buovns ar ULE tro,cay eth tue ater Gel de esseAnchorageMuseumofHistoryandArt.Also, there will be less professional gardening for the city's flower displays. These cuts are a consequence of raising em- ployee salaries,Posey said.He tried to trim se- lectively from each program and not,say,close a pool.Maybe some programs will get more money later,he says. The Assembly will vote on the budget Nov. 20. Originally from Beaumont,Texas,Posey's worked as a land manager for Arco,a state public utility commissioner and served as trea- surer for the state Democratic party.He is married with five kids and lives in the Bayshore/Klatt neighborhood.He was a volun- teer helping reorganize a charter school his children have attended when Wuerch asked him to work on his transition team last year. Wuerch picked Posey knowing his job was one of the administration's toughest chal- lenges:He's responsible for a wide array of programs with a demanding constituency. The mayor says Posey is "a great communi- cator”who can sit down and talk to competing interests and survive. Posey holds a big-picture perspective and gets a handle on details,said Parks and Recre- ation Commission member.Laile Fairbairn. Ask him about a roof at a Midtown park build- ing and he knows what it's made of.Or,you can Prem dpgten rm al like a politician. Advocates for museum and libri this fall have pro ed a new set of pre Without new kt wear and tear.An: museum if they ¢ Marston,chair of Arts Commission "If we're not bi The library an says -they're ju money.Private d says.Friends oj have gone from five years,but th: proposed cuts fo. Assemblymar the library coul and that a grea He compares Pc Tom Wolfe. "He's a Flak that's dismantl Tesche says. But while Wo front ma's€ the succes.uf tl ample: The city usec TRAILS:Skiers,snowmac Continuedfrom B-1 and the trails in Russian Jack Springs Park. The ski club has also been grooming multiuse trails - like the Tour of Anchorage Trail through Far North Bi- centennial Park -to encour- age nonskiers to use them in- stead nf the abi antly trails. "Anyone who uses those to ride their horses,to bike,to walk their dogs and run,are benefiting from the creation of those trails,”he said. Bad behavior can run both ways,said horseback rider Melodie Gross.She said she's been accosted by angry skiers even when riding legally on ">tails,such sy? ss.WELFARE:Group recommends changestoAlaska's system Continued from B-1 training could receive pro- gressively deeper cuts to their welfare payments. Eventually,the family could be cut off entirely.But if the parent began moving toward a job,the welfare payments would resume. In contrast,Alaska's cur- rent system reduces welfare payments when parents don't try to work but never cuts off families entirely.The penal- ties last for six months or one year even if the parent decides to cooperate with work re- quirements. The proposal would help create a more family-friendly approach by allowing the par- ent to get back in the welfare program,the report.said. Thirty-seven other states do it that way,Hoback said. The state would have to be extremely careful not to wrongly cut off any family,said Jim Nordlund,director of the state Division of Public Assis- tance.Still,he agreed that the current setup doesn't work well. *People who are working but not earning enough money to survive could get welfare payments.indefinitely if the state created and financed a supplemental program.Cur- rently,if low-wage earners ac- cept a small welfare check to supplement their'pay,it counts against their five-year lifetime limit to receive wel-fare.A separate system also could provide payments for people who have reached the five-year deadline but remain nhysically or mentally unable '0 work.' *The state could directly iubsidize employers,especial- v in rural or economically .ard-pressed areas where velfare clients may have trou- €finding a job. ¢New parents could be ced to start looking for work 1uch sooner,Currently,they re exempt.from work re- uirements for a year.Under le recommendation,the re- -quirements would kick in after 16 weeks,though state officials worried that child care for in- fants can be hard to find. Legislators and state offi- cials at the hearing in Wasilla seemed to support many of the suggestions. "Almost every one of those we think is a good recommen- dation,”Nordlund said. 'Another big area for im- provement,the institute found,concerns the private contractors that the state hires to prepare welfare clients for work,place them in jobs and manage their cases. The state typically assesses the contractors based on how many clients they serve, rather than how many people get and keep jobs,or move up . to higher-paying jobs,which is what should be measured, Hoback told the legislators.In addition,the state signs multi- year contracts with private agencies even before they've proven themselves,which shouldn't happen,she said.A contractor in western Alaska has been particularly ineffec- tive,providing virtually no casework,the institute report found. The state is hiring a consul- tant to help it create a better contracting system,Nordlund said. Since Alaska's welfare re- forms took effect four years ago,the number of families on public assistance dropped from a monthly average of 12,096 to about 7,000. The American Institute for Full Employment was started in 1994 in Klamath Falls,Ore., by businessman Dick Wendt,who has made a fortune manu-facturing windows and doors, Hoback said.- The institute supports con- verting public assistance ben- efits into wage subsidies and did the Alaska assessment for free,as it does for any state, she said. Wi Reporter Lisa Demer can be reached at Idemer@adn.com and 257-4390. FAIRBANKS Woman accused of child abuse pleads no contest to assault charge A North Pole woman accused of beating and abusing three children in her care has pleaded no contest to a single assault count.Lottie Beasley,52,was facing multiplecountsofassaultwhensheagreedtoplead no contest Thursday to one count of third-degree assault.The rest of the charges were dismissed. Alaska State Troopers said they learned oftheallegationsinJunewhentwoboys,ages 10and11,ran away from Beasley's home.Troop- er investigator Eric Olsen said Beasley was caring for the boys,as well as well as 3-and 6- year-old girls at the time.Olsen said Beasley had adopted one of the children and was trying to adopt the other three.- According to court documents,one of the boys told troopers that Beasley had beaten him on the head and back with broomsticks over the past few years.The boy said Beasley also beat him with plastic tubing. The other boy told troopers Beasley had burned him in the leg with a curling iron.The 'boy said Beasley also had beaten him with extension cords and had hit him with a broom- stick numerous times. The boys told troopers Beasley also hit the6-year-old girl with a broom and injured her on multiple occasions,although the girl said Beasley never hit her or her 3-year-old sister. Beasley's husband told troopers he had witnessed the abuse numerous times and tried to intervene but Beasley hit him too. According to the documents,the husband said he had seen Beasley hit the children with extension cords about a dozen times and with broomsticks about 25 times,as well as once with a frying pan.Beasley denied ever hitting the children and told troopers that her hus-band had struck them,the Fairbanks Daily News-Miner reported.The children were taken into the custodyof the Division of Family and Youth Services. The assault charge to which Beasley plead- ed is a consolidated count alleging that she hit the three children with a metal broomstick between.April and June of this year.It carries a maximum sentence of five years in prison. Prosecutor Teresa Foster noted that Beasley has no prior felonies and said she be-lieves the sentence Beasley receives through the plea will be similar to what she would have received after a trial and conviction. Beasley's sentencing is set for Feb.6. -The Associated Press FAIRBANKS North Pole man faces charges of sexual abuse of young daughter A 47-year-old North Pole man is accused of .Sexually assaulting his young daughter for several years. The man was arrested Monday on charges of sexual abuse of a minor. According to the criminal complaint,suspi-cions surfaced in September whena doctor"examining the 8-year-old girl noticed some "ena fatnetag:Wha dactan tald the cir An Alaska Railro off a flatbed rail Seattle and was | occurred when Alz lice chief in Was: Don Savage,5 Wednesday,May "This is my dr get started,”Sav Savage hela # he retired eal captain.He s troopers,inc] and Kodiak,: and Wildlife:., Savage re: moving toa coordinator. dispatch censeekinga$1.ter,which we tion. Savage w. the 21-memk Bill will fund rural sanitation projects m=CONGRESS:$125 million earmarked for Alaska programs. iP g-0d)By LIZ RUSKIN i}}0 Washington Bureau WASHINGTON -It looks like there will be more federal money next year to bring plumbing to rural Alaska homes. A joint House-Senate com- mittee this week passed an agriculture spending bill that includes $24 million for rural Alaska water and sewer pro- jects.That's in addition to $40 million in another bill ap- proved by Congress this week and brings the federal total to $9 million more than last year. Although nearly 75 percent of Alaska homes now have flush toilets,the percentage of unplumbed homes is still the highest in the country.The state's goal is to bring water and wastewater service to all households by 2005,although the cost per household is ex- pected to rise because the un- ..8erved communities tend to be very small or technically chal- lenging. This year's money will build new systems in villages now served only by central water- ing points,said Dan Easton, director of facility construc- tion and operation for the See Page B-4,BILL I cower UL UIE DNITUILy wwe,- Stone said.H The ski association built as most of the Hillside trails.Ri Single Family Re 6271 Fuller Lak Wasilla,Ala Assessed Value:§ Starting Bid:$4 Sale Date:11-27-01 Nesbett Memoria!¢ 825 W.4th Av Anchorage,A For additional information. First National Bank. (907)777-32 AUS7orinaybe."feesiéven knowALostPecetietedlMetsup-todate whidi.MessagesAuto accuno ;is.what vertebrae v you relax ir Stressless°® Ekornes of CHIME starting at $799 Smalt-size leather chair w mode and Stressless me: ve ees AMAL ULL CALCITE,LWUUPeErs Spuscouan .. BILL:More money for plumbing in rural areas Continuedfrom B-1 Alaska Department of Envi-ronmental Conservation, which includes the Village Safe Water program. -The money will also extend service to homes in communi- ties with limited systems,Eas- ton said.To get it the state must provide a_one-third match. "We'll be working with gov-ernor's office to prepare a listthatwilllikelyincludeabout70 rural sanitation projects,” Easton said. The Alaska Native Tribal Health Consortium is also .building sanitation infrastruc- ture using separate federal funds. The agriculture spendingpillincludesabout$125 million CVS for Alaska,according to the of- fice of Sen.Ted Stevens,R- Alaska,who requested thespending.The bill still must be passed a final time by both houses of Congress before it goes to the president for signing.It funds rural development and farm- ing programs,but also helps Alaska logging and fishing in- dustries. The bill provides: *$25 million to bring Inter- net access to communities without dial-up service.To qualify,rural communities must have an unemployment rate of more than 20 percent, so it is expected to primarily benefit Alaska.The construc- tion and service grants would go to telecommunication and cable companies. ¢$49.44 million for distance learning and telemedicine pro- grams,with Alaska grant re-|quests receiving priority con-sideration.. *$30 million for energy pro-- jects.in communities where the energy cost is twice the na- tional average. *$1.1 million for seafood marketing,harvesting and processing. *$630,000.to develop alter- native salmon products. ¢$720,000 for seafood waste research at the University of Alaska Fairbanks. «About $600,000 to develop Alaska wood products,in addi-tion to funding from the Forest Service of $1.5 million for thatpurpose. *$500,000 for reforestation in areas of high spruce bark beetle kill. *$1.5 million to expand the number of Alaska field offices of the U.S.Natural Resource Conservation Service. '©$600,000 for virus-free potato germplasm research at the University of Alaska. *Nearly $1 million for UAF research on pest managementfornortherncrops. lt Reporter Liz Ruskin can be reached at 1-202-383-0007 or Iruskin@adn.com. WINTER 2001 REGISTRATION The university now offers2MasterofScienceDegrees MS Counseline. «a ule Palmer post from 1996 until 'lier this year with the rank of | pent more than 26 years with the uding stints in Soldotna,Sitka vhere he also served as a Fish >rotection trooper. :places Charlie Fannon,who is new city job as communications He'll work on a proposed regional iter in the community.Wasilla is 6 million federal grant for the cen- yuld be at the Wasilla police sta- ill make $65,000 a year as chief of ver Wasilla department.-The Associated Press !OKs tax on some boats xes lost on air carriers fset reduced taxes on local air . i new tax on smaller commercial ts was approved Wednesday by mbly committee.ing boats and other commercial -s would be taxed between $120 ""--e an their size.Property Tbs An ner-oo _ ocal air carriers had objected that the city taxes aircraft at a higher rate than it taxes other businesses. The plan next goes to the full assembly.-The Associated Press SITKA Kayak instructor dies while teaching,police say A kayak instructor died Thursday at New . .Thomsen Harbor while teaching a student to perform maneuvers,Sitka police said Friday. Kenneth Frank Schaeffer,49,was display- ing a rollover maneuver to a student when he apparently struck a submerged rock,police said... At the time of the accident Thursday,Scha-effer was providing kayaking instructionto --Susan Kay Feero. Schaeffer exited the kayak after it rolled over and told her he thought he would be all right,police said.Schaeffer had a laceration and bruising above his left eye. Feero grabbed him and began paddling back to shore when the man rolled over in the . water and began floating,police said. Rescuers on shore were unable to revive him.Schaeffer was pronounced dead at Sitka Community Hospital. Feero was treated at Sitka Community Hos-"=+-aathla hunoathermia and later vice tu avuw. banks,among them Ff au.2... pital,GVEA and Mosquitonet.Yauney noted.that facilities like the hospital have backup systems for such a problem. The Mosquitonet outage affected the com- pany's roughly 4,500 area subscribers,accord- ing to Tom Clark,company founder and vice -president,°, -The Associated Press -. FAIRBANKS _Man charged with sexual assault _pleads no contest to misdemeanor A Fairbanks man charged with felony sexu-. al assault has pleaded no contest to a misde- meanor charge that carries a maximum sen- tence of one year in prison. Walt Herreid was indicted in March on one count each of first-and second-degree sexual assault in the attack of a woman in his home. On Thursday,Herreid agreed to plead no con- .test to third-degree attempted sexual assault. Prosecutor Teresa Foster said the incident that led to the charges occurred in January after a night of drinking.Foster said Herreid and the woman were acquaintances. -Foster said the woman alleged that Herreid ignored her rebuffs to his advances. 'Defense attorney Kenneth Covell contend- ed that the victim had made false allegations Award conditions Page 1 of 2 Mike Harper From:Charlie Walls [CWalls@denali.gov] Sent:Thursday,November 01,2001 9:06 AM To:Mike Harper (E-mail) Subject:Award conditions Mike, It wasn't clear to me who you wanted me to work with on the award condition language.So,|am sending thisdrafttoyou. What |did was use the last Financial Assistance Award Conditions (August 2001)as a starting point.|haveusedMSWord's tracking changes feature so you can see my suggestions to update the language to the 2002award, In our meeting with Al Ewing and Bob Poe yesterday there were four key princples outlined: 1.The award is for a specific list of projects. 2.The reporting of budgets and schedules is by project. 3.The indirect costs (overhead)are not to exceed 4%of the direct costs. 4.The terminology must be consistent with the federal single audit requirements. Therefore,|have retained the language regarding scope of work,budgets,and reporting with the exception ofthemonthlyprojectcheckingaccountsummaries.|deleted the monthly project checking account summariesas|understand you may employ other accounting methods and that information is redundant anyhow.Weshouldgetthesameinformationontheprojectbudgetandschedulereportingregardlessofwhataccountingsystemyouemploy.|added the concept design and final design milestones on the project scheduleingrequirementstobeconsistentwiththerecentlyissuedCommissionpolicyonprojectprioritization. On the payment paragraph |deleted the reimbursable payment language.The reason for that is |am told it isinconsistentwiththefederalguidelinesoncashmanagement.The intent here is that you should not befinancingthecashflow.Rather,you should be getting federal funds adanced to cover your cash flow.However,another federal requirement is that cash advances must be expended within 90 days of receipt ortherearepenalities.So,you need to be on top of your cash management.This is an area where we may wanttocheckwithKPMGifyouwishtoretainthereimbursablelanguage.We are OK with it either way.My intenthereissimplytocomplywithmyunderstandingofthefederalcashmanagementrequirements. On the paragraph incorporating commission policy on private enterprise,|added the other recent policiesissuedregardingprojectprioritization,pipelines and dispensers,and project design capacity.|am attachingthesepoliciesforyourreference. After you have had a chance to consider this mark-up please give me a call to discuss.My direct line is 271- 1624. Once we agree on a draft,what |would like to do is provide a clean draft for the auditor (KPMG?)to look overforcompliancewiththefederalterminology.The idea here is to make sure we don't run into a problem downtheroadwiththerequiredfederalsingleaudit. Thanks, Charlie <<Award Conditions draft for FY2002.doc>><<Private enterprise policy 1-12-01s.doc>><<Policy -Prioritization 9-7-01.doc>><<Policy -Pipelines 9-7-01.doc>><<Policy -Design Capacity -9-7-01 draft.doc>> 11/1/01 Award conditions Page 2 of 2 11/1/01 Pen.lgrmpe Mike Harper Gran?fa vA ¢ From:Sara Fisher-Goad Sent:Wednesday,October 24,2001 10:00 AM To:Mike Harper Cc:Karl Reiche;Chris Mello;Linda MacMillanSubject:RE:Award Conditions to the Financial Assistance Award Indirect is addressed in the draft we sent over.The letter requesting the $addressed AEA direct labor costs.Have you had discussions with them regarding direct costs built into the project budgets?If so,|just assumed when werequestreimbursementforcosts,that would be included.The draft also removed the separate SF270 for personal services. -----Original Message----- From:Mike Harper Sent:Wednesday,October 24,2001 9:49 AMTo:Sara Fisher-Goad Subject:FW:Award Conditions to the Financial Assistance Award Sara:So Denali Has the draft.Now we will see what concerns they might have.|think |told you that we would prefer tofigurethisoutthisweekwhileAlEwingisstillinthesaddle.Charles Walls will fill in for a month,Starting Nov 1.By theway,when do you suppose we will address the more fun issues of direct and indirect and the areas we mulled over at thatmeetingsomeweeksago.mike -----Original Message-----From:Kathy Prentki [mailto:KPrentki@denali.gov]Sent:Wednesday,October 24,2001 9:50 AM To:Mike Harper Subject:RE:Award Conditions to the Financial Assistance Award Thanks,Mike.We'll take a look and get back to you on this.Kathy [o-24 -----Original Message-----From:Mike Harper [mailto:MHarper@aidea.org]Sent:Wednesday,October 24,2001 8:57 AM To:Kathy Prentki . Subject:FW:Award Conditions to the Financial Assistance Award 15!t /Sa [A Zz L Chei> Subject:Award Conditions to the Financial Assistance Award This is the latest and much improved document -thanks to Linda's and Karl's work.(I also did a little bit of work on the photo documentationsection to clarify that we have some projects in progress that we cannot comply with the requirement) Unless |hear otherwise,|will not make any other changes.Good luck with Al and the Commission Mike! Amendments to Financial Assistance Awards Page 1 of 1 Mike Harper From:Kathy Prentki [KPrentki@denali.gov] Sent:Friday,September 14,2001 4:13 PM To:Sara L.Fisher-Goad (E-mail);Chris Mello (E-mail);Mike Harper (E-mail);'Karl Reiche (E-mail)*(E-mail);:Imacmillan@aidea.org Ce:Al Ewing;Michelle O'Leary Subject:Amendments to Financial Assistance Awards Importance:High Here is a copy of the changes we discussed yesterday.|have highlighted in yellow the new language,andhavedeletedtheparagraphreferringtoprojectcheckingaccounts.The quarterly reports can be submittedwiththeSF269forthedocumentationofotherfunding,rather than a new spreadsheet. |believe these address all the concerns voiced at our meeting,with two exceptions: a)the definition of personnel services/indirect cost issue,which need to be resolved by Bob Poe and AlEwing,and b)the determination if a specific match to the energy program overall should be required in the financialassistanceawards,which would probably be an infra-structure subcommittee item. If anyone has any additional concerns with these awards,please call right away!!We'd like to get them signedMondayifBobPoeisavailable--we need to get the funds obligated for year end before the quarterly meeting. Thanks, Kathy Prentki <<award conditions Amd 1 AEA 0026-DC-2001-18.doc>><<Award Amd 1 AEA 0026-DC-2001-18.doc>> <<Award Amd 5 AEA 0001-DC1999-I1.doc>><<Award Conditions,Amd 5 faa-AEA bulk fuel and powergeneration-10-20-00_.doc>> 10/15/01 (seo) q-20-°! Issues with the Denali Commission grants that we have not had the time to discuss with Denali " Commission staff.We need to have a meeting with an Attorney General to discuss concerns and then have a drafting session with DC staff.The problems below refer to the grants as currently drafted by DC staff as of 9/18/01. Concerns with the First Grant (G1)by section,many sections in the Second Grant (G2)have the same concerns and are noted: 1.Describes the intent of amendment 5.The descriptions of the changes do not reference the appropriate sections.G2 section]OK 2.Defines the term "other contributors.”We have made some progress addressing the difference between match and other funds,but matching requirement is still not specified.Last week's meeting concluded with this issue left to Executive Director and DC Commissioners and Chief of Staff.Some of the same concerns with G2 section2. 3.This section contradicts itself.One sentence says surplus on one project can be used for another that is experiencing a shortfall.Another sentence say that projects experiencing cost overruns which warrant additional funding will not be funded under this agreement.I think I know what they want to prohibit us from doing (completely short-funding one project to cover another)but there are unintended consequences with the proposed language.This is where some help with drafting would be useful. 4.Project officers -this section okay,but we could use a financial contact with Denali Commission. Same for G2. 5.Sections 5 and 6 address our reporting requirements.The quarterly report combines both 5 and 6A.According to DC staff our quarterly report,as historically submitted,satisfies their requirements.However,the quarterly report does not address all requirements listed in 5 and 6. My suggestion is to agree on a format and attach it as part of the grant.Same concerns for G2 sections 5 and 6A. 6.B)It was agreed to at the meeting that the SF 269 would be accompanied by the quarterly report.The sentence adding the "intent”is confusing.The intent of the quarterly is to report total expenditures (6A),the intent of 6B is to have the most recent quarterly report accompany the SF 269.Same for G2 C)The labor report,in general -as submitted,has not had a problem,but clarification that "any person employed”includes only force account labor and construction manager employees. There may be people working on the project that we are not able to track.Same for G2 7.Indirect costs are a true cost whether the grant pays for them or not.The policy regarding indirect costs needs to be addressed.For example -even if DC does not want to pay for indirect costs with grant funds,the indirect costs we pay for with state funds could be considered towards match. Different wording but same concerns with G2. 8.OK -addressed on the front of the grant,section not needed.Section not included in G2. 17. 18. Not sure why the requirement to submit a separate form for personal services costs.This section mixes the requirements of advances with reimbursements.It is confusing to read and can be abbreviated.Same concerns with G2 section8. OK OK Attachments reference amendment 3 information,section probably not needed. Error in referencing 15CFR24.30(c)(2).G2 section3 has the same intent and more clearly written. Private enterprise policy has been adopted,G2 section11 addresses private enterprise policy too. Perhaps the requirements should be consistent for both grants. NEPA policy OK OK Should clarify that for projects already built prior to am 5 AEA need not comply with the photo | requirements.Same for G2 section16. Financial Assistance Award DENALI COMMISSION 510 "L"Street,Suite 410 Anchorage,Alaska 99501 (907)271-1414 Project Number 0026-DC-2001-I8-A mendment No.1 Denali Commission Accounting Code 95670000 FY01 Commission 6,332,846.00 Funding 95670000 FY01 TAPL Funding 4,414,685.00 Total Commission Funding 10,747,531.00 Funds Available &Apportioned by OMB CEE _. FUNDING Recipient Name &Address Denali Other TotalsStateofAlaska .Commission contributorsAlaskaIndustrialDevelopmentandExportAuthority Alaska Energy Authority Bulk Fuel 4,414,685.00 0 4,414,685.00 813 W.Northern Lights RPSU 1.400.0Anchorage,AK 99503 400,000 1,218,500.00 2,618,500.00 Other 4,932,846.00 0 4,932,846.00 Phone (907)269-3000 Totals 10,747,531.00 |1,218,500.00 ] 11,966,031.00Fax(907)269-3044 so uo a Authority Project Title Award Performance Period 112 Stat 1854 Bulk Fuel Consolidation Upgrades &Power From:April 19,2001 Generation To:January 1,2007 This Financial Assistance Award approved by the Federal Co-Chair of the Denali Commission is issued in triplicate and constitutes an obligation of federal funding.By signing the three documents,the Recipient agrees to comply with the Award provisions indicated below and attached.Upon acceptance by the Recipient,two signed Award documents shall be returned to the Federal Co-Chair of the Denali Commission and the Recipient shall retain the third document.If not signed and returned without modification by the Recipient within 30 days of receipt,the Federal Co-Chair may unilaterally terminate this Award. [_]EDA Standard Terms and Conditions Public Works and Implementations Construction Components,dated 3/99{J Special Award Conditions and Attachments [1]Line Item Budget {X]15 CFR 24,Uniform Admin Requirements for Grants/Cooperative Agreements to State and Local Governments (www.access.gpo.gov/nara/cfr/waisidx_99/15cfr24_99.html) (J OMB Circular A-87,Cost Principles for State and Local Governments and Indian Tribal Governments (www.whitehouse.gov/OMB/circulars/a087/a087-allhtml)xX OMB Circular A-133,Audits (www.whitehouse.zov/OMB/circulars/al33/a133.html)[_]15 CER,Part 14,Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education,Hospitals,Other Nonprofit,and Commercial Organizations (www.access.¢po.sov/nara/cfr/waisidx 99/15cfr14_99.html) [.]OMB Circular A-122,Cost Principles for Nonprofit Organizations (www.whitehouse.gov/OMB/circulars/al22/a122.html) ["]OMB Circular A-21,Cost Principles for Educational Institutions (www.whitehouse.gov/OMB/circulars/aQ21/a021 html) [_]EDA Standard Terms and Conditions Capacity Building Programs [-]Department of Commerce Financial Assistance Standard Terms and Conditions,dated 10/98 Signature of Aufhorized Official -Denali Commission Typed Name and Title Date Jeffrey B.Staser,Federal Co-ChairVkCop Gl 14]ot Signature of/Auffofived Officxal Typed Name and Title Date Robert Poe,Jr.,Executive Director 7/14/01 Rev:01/01 arsout A-/[AAAsvarad ee form-2002 MIU .Lp e45 yr:MOVE, g vn Alaska Energy Authority Projects -Denali Commission FY2001 Funding--Amendment 1 Project Total Project |Total Project |Denali Funds |Denali Commission Funding Community Name Description/Type Costs Funding FY99-FY00 FY2001 Other Funds less Costs AEA Personnel Services Administrative 280,000 280,000 $280,000.00 : Ailakaket overruns Bulk Fuel $200,000.00 1,460,000 Energy Cost Reduction RFP 3,952,846 3,952,846 $3,952,846.00 - Energy Cost Reduction RFP Consultants 100,000 100,000 $100,000.00 - Business Plans for 40 Communities {Planning 600,000 600,000 $600,000.00 : Kotlik RPSU 1,855,000 1,855,000 705,000 |$600,000.00 550,000 : Kotlik overruns Bulk Fuel 3,850,000 3494685.5 2,339,295 |$394,685.00 760,705 Kongiganak Bulk Fuel 3,800,000 3,800,000 $3,100,000.00 700,000 - Nikolai Bulk Fuel 1,200,000 1,200,000 $§00,000.00 700,000 : Tuluksak RPSU 1,468,500 1,468,500 $800,000.00 668,500 - Repairs and Replacement 220,000 220,000 $220,000.00 - Total Funding 17,326,346 16,971,032 3,044,295 $10,747,531.00 4,839,205 : aea amend 2001.xlIs Award Conditions to the Financial Assistance Award Amendment No.1 to Project No.0026-DC-2001-I8 FY 2001 Bulk Fuel Consolidation Upgrades &Power Generation Alaska Energy Authority This Amendment No.1 adds the second installment of TAPL funding for this financial assistance award and provides additional TAPL funding for project overruns at Kotlik and Allakaket;clarifies intent of Commission funding for this project in Paragraph 2,including the allowable use of TAPL funds,revises Paragraph 8 to delete the need for individual project checking accounts for funds received in advance of need and emphasizes that reimbursement is the preferred method of requesting payment;and incorporates Paragraph 16 to formalize the requirement for periodic project photographs to be submitted.Changes to previous wording are shown in "Bold”typeface. The scope of work under this Financial Assistance Award (the "Agreement”)is to perform the planning and construct the projects listed on the attached spreadsheet.Any surplus of funds (on one or more of the projects funded under this Agreement)may be used on other projects identified under this Agreement that may be experiencing a project shortfall.The intent is not to set aside a specific sum of Commission funding to a particular community,but rather that the projects on the attached spreadsheet are al] completed successfully.Shifting of funding between project line items by AEA is allowed provided there is no increase in the total funding provided by the Commission, and TAPL money may be used only for Bulk Fuel projects.The Commission Project Officer is to be copied on al]revisions to the spreadsheet.The term "other contributors”shown on this Agreement shall be defined to include both match funds in accordance with 15 CFR 24,and all other sources of funds used for the projects,whether federal,state or private. Budget revisions to Commission funding shall be in accordance with 15CFR24.30 (c)(2).Written request by letter from the AEA Project Officerto the Commission Project Officer for concurrence is necessary for budget revisions where projects are added or deleted or that would result in the need for additional Commission funds. The Project Officers for AEA are Mr.Chris Mello for purposes of project design and construction and Ms.Sara Fisher-Goad for purposes of financial management.The Project Officer for the Denali Commission is Ms.Kathleen Prentki. AEA shall submit written progress reports to the Commission Project Officer quarterly (January/March,April/June,etc.).The reports are due within 30 calendar days of the end of the quarter.Interim reports are required in the event of significant project events that may extend the project schedule and/or impact the project budget.Quarterly progress reports shall include a narrative summary of the project status and accomplishments to date,and address the following questions:is the project on schedule,is the project on budget,and what actions are planned to address any project problems.These progress reports shall be sent to: Award Conditions,Amendment 1 to Project No.0026-DC-2001-18 Page 2 Alaska Energy Authority August 2001 Denali Commission 510 "L”Street,Suite 410 Anchorage,AK 9950] The Commission reserves the right to direct AEA to provide the progress reports in electronic format for posting on the Commission web page. 6.Three forms of project financial and Jabor reports are required. A.Project financial status reports shall be submitted to the Commission Project Officer quarterly (included as part of the quarterly progress reports).For each project that includes funding from the Denali Commission,the quarterly financial status report shall include the following: i.the total project budget i.the project schedule with milestone dates for design and construction iil.the total amount of Denali Commission funds committed to the project Iv.the total project expenditures as of the end of the most recent quarter v.the total expenditure of Denali Commission funds for the project as of the end of the most recent quarter Vi.the percentage of expenditures to the total budget;and Vii.a project performance analysis on project line items,as defined by the AEA, showing budget costs compared to actual expenditures and obligations to date versus work performed to date (for each line item). B.A Financial Status Report (Standard Form 269 - www.whitehouse.gov/OMB/grants/index.html#forms)shall be submitted to the Commission Project Officer within 90 days after the end of each anniversary of the initial award date,and a final Financial Status Report shall be submitted within 90 days after the end of the Award Performance Period.For purposes of this financial assistance award,the SF269 shall show actual project match funds only. However,whenever an SF269 is required to be filed,the most recent quarterly financial status report spreadsheet will accompany the SF269.The intent of including the quarterly report with the SF269 is to capture in aggregate,all project expenditures,regardless of the origin of the funds expended. C.A Labor Type,Residence,and Wage Report shall be submitted to the Commission Project Officer at a minimum of two times annually.At a minimum,these two reports must be submitted on or near August 1 and December 1*each year to correspond with the Alaska construction season.A Labor Type,Residence,and Wage Report must included the following information by construction project for any person employed on the construction of that project:position,place of primary residence,first check date,last check date,rate of pay per hour,payroll earnings from inception of project to date. Award Conditions,Amendment 1 to Project No.0026-DC-2001-I8 Page 3 Alaska Energy Authority August 2001 10. 11. 12. Indirect costs (see OMB Circular A-87)are not allowable under this Agreement. To receive payment,the Authority must submit a "Request for Advance or Reimbursement”,Standard Form-270, www.whitehouse.gov/OMB/grants/index.html#forms,to the Commission Project Officer. Cost reimbursable payments are approved under this award,and are the preferred method of payment.Reimbursements are based on actual expenditures only._Preferably,AEA shall submit a request for reimbursement on Standard Form-270, along with the quarterly report.However,request for reimbursement is not limited to a quarterly basis.AEA may request reimbursement on a more frequent basis if necessary.Although cost reimbursement is the expected method to receive payment, advance payments may be requested on Standard Form-270 for no more than the amount anticipated to be needed for the following 90 days.It is expected that the Authority will forecast by letter or spreadsheet format,Commission funds or working capital advances needed on a monthly (or as needed)basis for each project.The Commission reserves the right to consolidate project Jevel payments into one payment. This does not preclude more frequent Commission payments,then monthly,given project specific needs.Commission funds received as advance payment shall be subject to interest provisions as set forth in 31CFR205.12.The Commission Project Officer may review all project payments made by AEA from the funds advanced to determine if payments made are justified and supported by appropriate records,invoices and other documentation.The Commission reserves the right to prohibit further payments to the Authority,at any time,if discrepancies involving the advance account funds arise, until such time that the discrepancies are resolved to the satisfaction of the Commission. Pay requests for Authority administrative costs shall be on a separate Standard Form -270 (quarterly)from project pay requests. To the maximum extent feasible,considering applicable Jaws,AEA shall accomplish the work of this Agreement utilizing Jocal labor and small,minority owned and disadvantaged businesses. No portion of this award may be used for lobbying or propaganda purposes as prohibited by 18 U.S.C.Section 1913 or Section 607(a)of Public Law 96-74. AEA agrees to comply with the Commission's private enterprise policy,a draft of which is attached hereto and made a part hereof. Based upon proposed Federal funding,project leve]environmental reviews in accordance with the National Environmental Policy Act (NEPA)and the National Historic Preservation Act (NHPA)are required for each project undertaken with Denali Commission funds.In accordance with NEPA and NHPA legislation,AEA shall address all potential environmental concerns (specific and cumulative effects)associated with the projects,identified in this Agreement,in consultation with applicable Federal,State,and Award Conditions,Amendment 1 to Project No.0026-DC-2001-18 Page 4 Alaska Energy Authority August 2001 13. 14. 15. 16. local authorities.If the scope of work is changed in the future,then AEA will revisit the project Jevel environmental reviews to determine if potential environmental concerns must be further addressed.In the interest of streamlining the project level environmental reviews and to avoid duplication of effort,any other Federal Agency environmental review process carried out by AEA on projects,identified in this Agreement,shall meet the intent of this paragraph. AEA shall evaluate the condition of bulk fuel storage facilities and electric utility systems in rural Alaska,and will develop a list of these facilities ranked in the order of their physical condition.AEA wil]also acquire information on the operations and maintenance performance of rural electric utilities that may be incorporated in the project selection process. The electric utility systems and bulk fuel systems receiving the benefit of Commission funding must be sustainable.As a precondition of construction funding,a project must meet the attached sustainability criteria. There are many issues such as facility Jocation,project ownership,construction costs,and compliance with sustainability criteria that require resolution prior to proceeding with full design and construction.If project issues cannot be resolved in a reasonable time frame, the Commission expects AEA to move down the priority list(s)to projects that are ready to proceed to full design and construction.It is expected that the Commission and AEA Project Officers will meet quarterly to review the progress of projects and collaboratively determine if reasonable progress is being made and what steps should be taken,if any,to deal with new developments encountered in the design and construction process. Photographic documentation of project progress shall be provided with the quarterly reports.For full-fledged,active construction projects,photo documentation shall include a minimum of five,dated photos per quarter of current project status,such that a complete record of the construction is maintained over time,from "before,”showing the situation before the start of construction,to "during”showing work proceeding on the project,and "after”to show the finished project.For minor repair and O&M projects,pictures should be provided of before and after to the extent possible.Photos may be provided as photo quality,3x5 prints with negative for each picture,and/or print quality electronic photos (digital images). Issues with the Denali Commission grants that we have not had the time to discuss with Denali Commission staff.We need to have a meeting with an Attorney General to discuss concerns and then have a drafting session with DC staff.The problems below refer to the grants as currently drafted by DC staffas of 9/18/01. Concerns with the First Grant (G1)by section,many sections in the Second Grant (G2)have the same concerns and are noted: 1.Describes the intent of amendment 5.The descriptions of the changes do not reference the appropriate sections.G2 section!OK 2.Defines the term "other contributors.”We have made some progress addressing the difference between match and other funds,but matching requirement is still not specified.Last week's meeting concluded with this issue left to Executive Director and DC Commissioners and Chief of Staff.Some of the same concerns with G2 section2. 3.This section contradicts itself.One sentence says surplus on one project can be used for another that is experiencing a shortfall.Another sentence say that projects experiencing cost overruns which warrant additional funding will not be funded under this agreement.I think I know what they want to prohibit us from doing (completely short-funding one project to cover another)but there are unintended consequences with the proposed language.This is where some help with drafting would be useful. 4.Project officers -this section okay,but we could use a financial contact with Denali Commission. Same for G2. 5.Sections 5 and 6 address our reporting requirements.The quarterly report combines both 5 and 6A.According to DC staff our quarterly report,as historically submitted,satisfies their requirements.However,the quarterly report does not address all requirements listed in 5 and 6. My suggestion is to agree on a format and attach it as part of the grant.Same concerns for G2 sections 5 and 6A. 6.B)It was agreed to at the meeting that the SF 269 would be accompanied by the quarterly report.The sentence adding the "intent”is confusing.The intent of the quarterly is to report total expenditures (6A),the intent of 6B is to have the most recent quarterly report accompany the SF 269.Same for G2 C)The labor report,in general -as submitted,has not had a problem,but clarification that "any person employed”includes only force account labor and construction manager employees. There may be people working on the project that we are not able to track.Same for G2 7.Indirect costs are a true cost whether the grant pays for them or not.The policy regarding indirectcostsneedstobeaddressed.For example-even if DC does not want to pay for indirect costs with grant funds,the indirect costs we pay for with state funds could be considered towards match.Different wording but same concerns with G2. 8.OK -addressed on the front of the grant,section not needed.Section not included.in G2. 17. 18. Not sure why the requirement to submit a separate form for personal services costs.This section mixes the requirements of advances with reimbursements.It is confusing to read and can be abbreviated.Same concerns with G2 section8. OK OK Attachments reference amendment 3 information,section probably not needed. Error in referencing ISCFR24.30(c)(2).G2 section3 has the same intent and more clearly written. Private enterprise policy has been adopted,G2 section11 addresses private enterprise policy too. Perhaps the requirements should be consistent for both grants. NEPA policy OK OK Should clarify that for projects already built prior to am 5 AEA need not comply with the photo requirements.Same for G2 section16. Financial Assistance Award Project Number 0026-DC-2001-I8-A mendment No.1 Denali Commission Accounting Code 95670000 FY0]Commission 6,332,846.00 Funding 95670000 FY01 TAPL Funding 4,414,685.00 DENALI COMMISSION 510 "L”Street,Suite 410 Anchorage,Alaska 99501 (907)271-1414 Total Commission Funding 10,747,531.00 Funds Available &Apportioned by OMB CLE Recipient N &Ada FUNDINGecipientNameress7 State of Alaska Commission contributors forals Alaska Industrial Development and Export Authority Alaska Energy Authority Bulk Fuel 4,414,685.00 0 4,414,685.00 813 W.Northern Lights RPSUAnchorage,AK 99503 1,400,000 1,218,500.00 2,618,500.00 Other 4,932,846.00 0 4,932,846.00 Phone (907)269-3000 Total 10,747,531.00 |1,218,500.00 |11,966,031.00Fax(907)269-3044 _ee ee nn Authority Project Title Award Performance Period 112 Stat 1854 Bulk Fuel Consolidation Upgrades &Power From:April 19,2001 Generation To:January 1,2007 This Financial Assistance Award approved by the Federal Co-Chair of the Denali Commission is issued in triplicate and constitutes an obligation of federal funding.By signing the three documents,the Recipient agrees to comply with the Award provisions indicated below and attached.Upon acceptance by the Recipient,two signed Award documents shall be returned to the Federal Co-Chair of the Denali Commission and the Recipient shall retain the third document.If not signed and returned without modification by the Recipient within 30 days of receipt,the Federal Co-Chair may unilaterally terminate this Award.[_]EDA Standard Terms and Conditions Public Works and Implementations Construction Components,dated 3/99&]Special Award Conditions and Attachments []Line Item Budget [XJ]15 CFR 24,Uniform Admin Requirements for Grants/Cooperative Agreements to State and Local Governments (www.access.epo.gov/nara/cfr/waisidx,99/15cfr24_99 html)P<]OMB Circular A-87,Cost Principles for State and Local Governments and Indian Tribal Governments (www.whitehouse.gov/OMB/circulars/a087/a087-all.html)[x]OMB Circular A-133,Audits (www.whitehouse,z0v/OMB/circulars/al133/a133.html) [[]15 CFR,Part 14,Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education,Hospitals,Other Nonprofit,and Commercial Organizations (www.access.opo.cov/nara/cfr/waisidx_99/15cfr14_99 html)(-]OMB Circular A-122,Cost Principles for Nonprofit Organizations (www.whitehouse.cov/OMB/circulars/al22/a122 html) (-]OMB Circular A-21,Cost Principles for Educational Institutions (www.whitehouse.gov/OMB/circulars/a021/a021 html)[_]EDA Standard Terms and Conditions Capacity Building Programs[-]Department of Commerce Financial Assistance Standard Terms and Conditions,dated 10/98 Signature of Authorized Official -Denali Commission Typed Name and Title Date Jeffrey B.Staser,Federal Co-Chair*G|14/01 DateTypedNameandTitleq/'a/o (Robert Poe,Jr.,Executive Director Rev:01/01 Alaska Energy Authority Projects -Denali Commission FY2001 Funding--Amendment 1 Project Total Project |Total Project |Denali Funds |Denali Commission Funding Community Name Description/Type -Costs Funding FY99-FY00 FY2001 Other Funds less Costs AEA Personnel Services Administrative 280,000 280,000 $280,000.00 - Allakaket overruns Bulk Fuel $200,000.00 1,460,000 Energy Cost Reduction RFP 3,952,846 3,952,846 $3,952,846.00 - Energy Cost Reduction RFP Consultants 100,000 100,000 $100,000.00 - Business Plans for 40 Communities [Planning 600,000 600,000 $600,000.00 - Kotlik RPSU 1,855,000 1,855,000 705,000 |$600,000.00 550,000 - Kotlik overruns Bulk Fuel 3,850,000 3494685.5 2,339,295 |$394,685.00 760,705 Kongiganak Bulk Fuel -3,800,000 3,800,000 $3,100,000.00 700,000 - Nikolai Bulk Fuel 1,200,000 1,200,000 $500,000.00 700,000 - Tuluksak RPSU 1,468,500 1,468,500 $800,000.00 668,500 - Repairs and Replacement 220,000 220,000 $220,000.00 - Total Funding 17,326,346 16,971,032 3,044,295 $10,747,531.00 4,839,205 - aea amend1 2001.xIs Award Conditions to the Financial Assistance Award Amendment No.1 to Project No.0026-DC-2001-I8 FY2001 Bulk Fuel Consolidation Upgrades &Power Generation Alaska Energy Authority This Amendment No.1 adds the second installment of TAPL funding for this financial assistance award and provides additional TAPL funding for project overruns at Kotlik and Allakaket;clarifies intent of Commission funding for this project in Paragraph 2,including the allowable use of TAPL funds,revisesParagraph8todeletetheneedforindividualprojectcheckingaccountsfor funds received in advance of need and emphasizes that reimbursement is the preferred method of requesting payment;and incorporates Paragraph-16 to formalize the requirement for periodic project photographs to be submitted.Changes to previous wording are shown in "Bold”typeface. The scope of work under this Financial Assistance Award (the "Agreement”)is to perform the planning and construct the projects listed on the attached spreadsheet.Any surplus of funds (on one or more of the projects funded under this Agreement)may be used on other projects identified under this Agreement that may be experiencing a project shortfal}.The intent is not to set aside a specific sum of Commission funding to a particular community,but rather that the projects on the attached spreadsheet are all completed successfully.Shifting of funding between project line items by AEA is allowed provided there is no increase in the total funding provided by the Commission, and TAPL money may be used only for Bulk Fuel projects.The Commission Project Officer is to be copied on all revisions to the spreadsheet.The term "other contributors”shown on this Agreement shall be defined to include both match funds in accordance with 15 CFR 24,and all other sources of funds used for the projects,whether federal,state or private. Budget revisions to Commission funding shall be in accordance with 15CFR24.30 (c)(2).Written request by letter from the AEA Project Officerto the Commission Project Officer for concurrence is necessary for budget revisions where projects are added or deleted or that would result in the need for additional Commission funds. The Project Officers for AEA are Mr.Chris Mello for purposes of project design and construction and Ms.Sara Fisher-Goad for purposes of financial management.The Project Officer for the Denali Commission is Ms.Kathleen Prentki. AEA Shall submit written progress reports to the Commission Project Officer quarterly (January/March,April/June,etc.).The reports are due within 30 calendar days of the end of the quarter.Interim reports are required in the event of significant project events that may extend the project schedule and/or impact the project budget.Quarterly progress reports shall include a narrative summary of the project status and accomplishments to date,and address the following questions:is the project on schedule,is the project on budget,and what actions are planned to address any project problems.These progress reports shall be sent to: Award Conditions,Amendment 1 to Project No.0026-DC-2001-I8 Page 2 Alaska Energy Authority August 2001 Denali Commission 510 "L”Street,Suite 410 Anchorage,AK 9950] The Commission reserves the right to direct AEA to provide the progress reports in electronic format for posting on the Commission web page. 6.Three forms of project financial and labor reports are required. A.Project financial status reports shall be submitted to the Commission Project Officer quarterly (included as part of the quarterly progress reports).For each project that includes funding from the Denali Commission,the quarterly financial status report shall include the following: i.the total project budget il.the project schedule with milestone dates for design and construction il.the total amount of Denali Commission funds committed to the project IV.the total project expenditures as of the end of the most recent quarter v.the total expenditure of Denali Commission funds for the project as of the end of the most recent quarter Vi.the percentage of expenditures to the total budget;and vii.a project performance analysis on project line items,as defined by the AEA, showing budget costs compared to actual expenditures and obligations to date versus work performed to date (for each line item). B.A Financial Status Report (Standard Form 269 - www.whitehouse.gov/OMB/egrants/index.html#forms)shall be submitted to the Commission Project Officer within 90 days after the end of each anniversary of the initial award date,and a final Financial Status Report shall be submitted within 90 days after the end of the Award Performance Period.For purposes of this financial assistance award,the SF269 shall show actual project match funds only. However,whenever an SF269 is required to be filed,the most recent quarterly financial status report spreadsheet will accompany the SF269.The intent of including the quarterly report with the SF269 is to capture in aggregate,all project expenditures,regardless of the origin of the funds expended. C.A Labor Type,Residence,and Wage Report shall be submitted to the Commission Project Officer at a minimum of two times annually.At a minimum,these two reports must be submitted on or near August 1°and December 1*each year to correspond with the Alaska construction season.A Labor Type,Residence,and Wage Report must included the following information by construction project for any person employed on the construction of that project:position,place of primary residence,first check date,Jast check date,rate of pay per hour,payroll earnings from inception of project to date. Award Conditions,Amendment 1 to Project No.0026-DC-2001-18 Page 3 Alaska Energy Authority 10. 11. 12. August 2001 Indirect costs (see OMB Circular A-87)are not allowable under this Agreement. To receive payment,the Authority must submit a "Request for Advance or Reimbursement”,Standard Form-270,www.whitehouse.gov/OMB/grants/index.html#forms,to the Commission Project Officer. Cost reimbursabJe payments are approved under this award,and are the preferred method of payment.Reimbursements are based on actual expenditures only.- Preferably,AEA shall submit a request for reimbursement on Standard Form-270, along with the quarterly report.However,request for reimbursement is not limited to a quarterly basis.AEA may request reimbursement on a more frequent basis if necessary.Although cost reimbursement is the expected method to receive payment, advance payments may be requested on Standard Form-270 for no more than the amount anticipated to be needed for the following 90 days.It is expected that the Authority will forecast by letter or spreadsheet format,Commission funds or working capita]advances needed on a monthly (or as needed)basis for each project.The Commission reserves the right to consolidate project leve]payments into one payment. This does not preclude more frequent Commission payments,then monthly,given project specific needs.Commission funds received as advance payment shal]be subject to interest provisions as set forth in 31CFR205.12.The Commission Project Officer may review all project payments made by AEA from the funds advanced to determine if payments made are justified and supported by appropriate records,invoices and other documentation.The Commission reserves the right to prohibit further payments to the Authority,at any time,if discrepancies involving the advance account funds arise, until such time that the discrepancies are resolved to the satisfaction of the Commission. Pay requests for Authority administrative costs shall be on a separate Standard Form -270 (quarterly)from project pay requests. To the maximum extent feasible,considering applicable Jaws,AEA shal]accomplish the work of this Agreement utilizing loca]labor and small,minority owned anddisadvantagedbusinesses. No portion of this award may be used for lobbying or propaganda purposes as prohibited by 18 U.S.C.Section 1913 or Section 607(a)of Public Law 96-74. AEA agrees to comply with the Commission's private enterprise policy,a draft of which is attached hereto and madea part hereof. Based upon proposed Federal funding,project Jevel environmental reviews in accordance with the National Environmental Policy Act (NEPA)and the National Historic Preservation Act (NHPA)are required for each project undertaken with Denali Commission funds.In accordance with NEPA and NHPA legislation,AEA shal]address all potential environmental concerns (specific and cumulative effects)associated with the projects,identified in this Agreement,in consultation with applicable Federal,State,and Award Conditions,Amendment 1 to Project No.0026-DC-2001-I8 Page 4 -Alaska Energy Authority 13. 14. 15. 16. August 2001 local authorities.If the scope of work is changed in the future,then AEA wil]revisit the project Jevel environmental reviews to determine if potential environmental concerns must be further addressed.In the interest of streamlining the project Jeve]environmental reviews and to avoid duplication of effort,any other Federal Agency environmental review process carried out by AEA on projects,identified in this Agreement,shall meet the intent of this paragraph. AEA shall evaluate the condition of bulk fuel storage facilities and electric utility systems in rural Alaska,and will develop a list of these facilities ranked in the order of their physical condition.AEA will also acquire information on the operations and maintenance performance of rural electric utilities that may be incorporated in the project selection process. The electric utility systems and bulk fuel systems receiving the benefit of Commission funding must be sustainable.As a precondition of construction funding,a project must meet the attached sustainability criteria. There are many issues such as facility location,project ownership,construction costs,and compliance with sustainability criteria that require resolution prior to proceeding with full design and construction.If project issues cannot be resolved in a reasonable time frame, the Commission expects AEA to move down the priority list(s)to projects that are ready to proceed to full design and construction.It is expected that the Commission and AEA Project Officers will meet quarterly to review the progress of projects and collaboratively determine if reasonable progress is being made and what steps should be taken,if any,to deal with new developments encountered in the design and construction process. Photographic documentation of project progress shall be provided with the quarterly reports.For full-fledged,active construction projects,photo documentation shall include a minimum of five,dated photos per quarter of current project status,such that a complete record of the construction is maintained over time,from "before,”'showing the situation before the start of construction,to "during”'showing work proceeding on the project,and "after”to show the finished project.For minor repair and O&M projects,pictures should be provided of before and after to the extent possible.Photos may be provided as photo quality,3x5 prints with negative for each picture,and/or print quality electronic photos (digital images). 3,) Financial Assistance AwardOi Project Number 0001-DC1999-I1 -Amendment No.5 Denali Commission Accounting Codez DENALI COMMISSION 95670000 |FY 1999 Commission $16,274,000510"L"Street,Suite 410 fundingseemLas95670000|FY 2000 Commission $9,000,000 funding 95670000 |Transfer to project #0023-($540,162) DC-2001-15 95670000 |FY 2000 TAPL funding $5,202,000 Total Commission Funding (1999 &2000)$29,935,838 Funds Available &Apportioned by OMB (Le Recipi N:&Add FUNDINGecipientNameressDenaliAEA&other Totals State of Alaska Commission contributors Alaska Industrial Development and Export Authority Bulk Fuel $19,999,362 |$11,858,054 |$31,857,416 Alaska Energy Authority .Power $8,677,000 |$3,200,547 |$11,877,547813W.Northern Lights _generation Anchorage,AK 99503 Design,$1,259,476 $100,000 $1,359,476 m™AVTEC, Phone (907)269-3000 other Fax (907)269-3044 Totals $29,935,838 |$15,158,601 |$45,094,439 Award Performance PeriodAuthorityProjectTitle 112 Stat 1854 Generation (FY 1999 &2000) Bulk Fuel Consolidation Upgrades and Power To: From:June 3,1999 October 31,2005 this Award. X Special Award Conditions and Attachments X Line Item Budget WWww.access. www.whitehouse.gov/OMB/circulars/al22/a122.html www.whitehouse.2z0v/OMB/circulars/a02 1/a021 htm! [_]OMB Circular A-21,Cost Principles for Educational Institutions (_]EDA Standard Terms and Conditions Capacity Building Programs This Financial Assistance Award approved by the Federal Co-Chair of the Denali Commission is issued in triplicate and constitutes an obligation of federal fimding.By signing the three documents,the Recipient agrees to comply with the Award provisions indicated below and attached.Upon acceptance by the Recipient,two signed Award documents shall be returned to the Federal Co-Chair of the Denali Commission and the Recipient shall retain the third document.Ifnot signed and retumed without modification by the Recipient within 30 days of receipt,the Federal Co-Chair may unilaterally terminate {_]EDA Standard Terms and Conditions Public Works and Implementations Construction Components,dated 3/99 X 15 CFR 24,Uniform Admin Requirements for Grants/Cooperative Agreements to State and Local Governments (www.access.gpo.gow/nara/cfr/waisidx 99/15cfr24_99.html)X OMB Circular A-87,Cost Principles for State and Local Governments and Indian Tribal Governments (www.whitehouse.gov/OMB/circulars/a087/a087-all.html) X OMB Circular A-133,Audits of States,Local Governments and Indian Tribal Governments (www.whitehouse.gov/OMB/circulars/al33/a133.html) [_]15 CFR,Part 14,Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education,Hospitals,Other Nonprofit,and Commercial Organizations o.gov/nara/cft/waisidx_99/15cfri4_99.html(_]OMB Circular A-122,Cost Principles for Nonprofit Organizations {_]Department of Commerce Financial Assistance Standard Terms and Conditions,dated 10/98 Signature of Autpori fficial -Denali Commission Typed Name and Title Date Jeffrey Staser,Federal Co-Chair al [4 if Ol DateeTyicialAEASignatureofTypedNameandTitle Robert Poe,Jr.,Executive Director of'4f 1. Award Conditions to the Financial Assistance Award Amendment No.5 to Project No.0001-DC1999-I1 Bulk Fuel Consolidation Upgrades &Power Generation (1999 &2000) Alaska Energy Authority This Amendment No.5 clarifies the intent of Commission funding for this project in Paragraph 2,including the allowable use of TAPL funds;revises the Project Officers in Paragraph 3;revises Paragraph 8 to delete the need for individual project checking accounts for funds received in advance of need,and emphasizes that reimbursement is the preferred method of requesting payment;incorporates Paragraph 17 to formalize the requirement for periodic project photographs to be submitted.Changes to previous wording are shown in "Bold”typeface. The scope of work for this project includes completion of projects identified under Amendment No.2,as well as 7 individual new projects funded with FY2000 funds. Total Commission funding (FY99 and FY2000)for the Alaska Energy Authority (Authority)through this Agreement is $29,935,838;total funding (including from other sources)is $45,094,439.The term "other contributors”shown on this Agreement shall be defined to include both match funds in accordance with 15 CFR 24,and all other sources of funds used for the projects,whether federal,state or private. Commission funding is intended for use for the scope of work specified above only. Commission funding is intended for use in the three broad areas of a)bulk fuel construction,b)power generation,and c)other projects such as the circuit rider program and AVTEC generator purchase for operator training.Any surplus of funds (on one or more of the projects funded under this Agreement)may be used on other projects, identified under this Agreement that may be experiencing a project shortfall.The intent is not to set aside a specific sum of Commission funding to a particular community,but rather that the projects,identified under this Agreement,are all completed successfully. Shifting of funds between line items of the scope of work within this Agreement may be allowed provided there is no increase in the total funding provided by the Commission,and only if the full scope for these affected projects will be completed as originally set forth.TAPL money may be used only for Bulk Fuel projects. Projects experiencing cost overruns which warrant additional funding will not be funded under this Agreement.Any such additional funds will be provided only under future financial assistance awards.In the event there is a balance of funding after the full scope of work is completed,then the Commission will determine how the excess funds will be allocated. The Project Officers for the Authority are Mr.Chris Mello for purposes of project design and construction and Ms.Sara Fisher-Goad for purposes of financial management.The Project Officer for the Denali Commission is Ms.Kathy Prentki. The Authority shall submit written progress reports to the Commission Project Officer quarterly (January/March,April/June,etc.).The reports are due within 30 calendar days of the end of the quarter.Interim reports are required in the event of significant project events that may extend the project schedule and/or impact the project budget.Quarterly progress reports shall include a narrative summary of the project status and accomplishments to date,and address the following questions:is the project on schedule, Page 2AwardConditions,Amendment No.5 to Project No.0001-DC1999-I1 August 2001AlaskaEnergyAuthority is the project on budget,and what actions are planned to address any project problems. These progress reports shall be sent to: Denali Commission: 510 "L”Street,Suite 410 Anchorage,AK 99501 The Commission reserves the right,at a future date,to direct the Authority to provide the progress reports in electronic format for posting on the Commission web page. 6.Three forms of project financial and labor reports are required. A.Project financial status reports shall be submitted to the Commission Project Officer quarterly (included as part of the quarterly progress reports).For each project that includes funding from the Denali Commission,the quarterly financial status report shall include the following: i the total project budget the project schedule with milestone dates for design and construction ill.the total amount of Denali Commission funds committed to the project Iv.the total project expenditures as of the end of the most recent quarter Vv.the total expenditure of Denali Commission funds for the project as of the end of the most recent quarter Vi.the percentage of expenditures to the total budget;and vii a project performance analysis on project line items,as defined by the AEA,showing budget costs compared to actual expenditures and obligations to date versus work performed to date (for each line item). B.A Financial Status Report (Standard Form 269 -www.whitehouse.gov/OMB/srants/index.html#forms)shall be submitted to the Commission Project Officer within 90 days after the end of each anniversary of the initial award date,and a final Financial Status Report shall be submitted within 90 days after the end of the Award Performance Period.For purposes of this financial assistance award,the SF269 shall show actual project match funds only.However,whenever an SF269 is required to be filed,the most recent quarterly financial status report spreadsheet will accompany the SF269.The intent of including the quarterly report with the SF269 is to capture in aggregate,all project expenditures,regardless of the origin of the funds expended. C.A Labor Type,Residence,and Wage Report shall be submitted to the Commission Project Officer at a minimum of two times annually.Ata minimum,these two reports must be submitted on or near August 1 and-December 1"each year to correspond with the Alaska construction season.A Labor Type,Residence,and Wage Report must included the following Award Conditions,Amendment No.5 to Project No.0001-DC1999-I1 Alaska Energy Authority , 10. 11. 12. No portion of this award may be used for lobbying or propaganda purposes as prohibited Page 3 August 2001 information by construction project for any person employed on the construction of that project:position,place of primary residence,first check date,last check date,rate of pay per hour,payroll earnings from inception of project to date., The cost principles of OMB Circular A-87 are applicable to this award.Since there are no indirect costs included in the assistance award budget,they are not allowable under this Agreement. The Authority agrees to comply with the requirements of OMB Circular A-133,"Audits of States,Local Governments and Non-Profit Organizations.” To receive payment,the Authority must submit a "Request for Advance or Reimbursement”,Standard Form-270,to the Commission Project Officer.Cost reimbursable payments are approved under this award,and are the preferred method of payment.Reimbursements are based on actual expenditures only. Preferably,AEA shall submit a request for reimbursement on Standard Form-270, along with the quarterly report.However,request for reimbursement is not limited to a quarterly basis.AEA may request reimbursement on a more frequent basis if necessary.Although cost reimbursement is the expected method to receive payment,advance payments may be requested on Standard Form-270 for no more than the amount anticipated to be needed for the following 90 days.It is expected that the Authority will forecast by letter or spreadsheet format,Commission funds or working capital advances needed on a monthly (or as needed)basis for each project.The Commission reserves the right to consolidate project level payments into one payment. This does not preclude more frequent Commission payments,then monthly,given project specific needs.Commission funds received as advance payment shall be subject to 'interest provisions as set forth in 31CFR205.12.The Commission Project Officer may review all project payments made by AEA from the funds advanced to determine if payments made are justified and supported by appropriate records,invoices and other documentation.The Commission reserves the right to prohibit further payments to the Authority,at any time,if discrepancies involving the advance account funds arise, until such time that the discrepancies are resolved to the satisfaction of the Commission. Pay requests for Authority administrative costs shall be on a separate Standard Form -270 (quarterly)from project pay requests. To the maximum extent feasible,considering applicable laws,the Authority shall accomplish the work of this Agreement utilizing local labor and small,minority owned and disadvantaged businesses. by 18 U.S.C.Section 1913 or Section 607(a)of Public Law 96-74. Attached to these Award Conditions are the following documents: Award Conditions,Amendment No.5 to Project No.0001 "DC1999-I1AlaskaEnergyAuthority 13. 15. 16. 17. Page 4 August 2001 a.Notes to Amendment No.3 which describe specific project changes b.Spreadsheet of projects sorted alphabetically,and c.Spreadsheet of projects sorted by project type Project budget revisions shall be in accordance with 15CFR24.30(c.iii.2).Written request by letter from the Authority Project Officer to the Commission Project Officer for concurrence is necessary for budget revision approval. Per agreement between the Commission and State of Alaska,a "private enterprise policy shall be adopted which appropriately considers but is not limited to the following provisions:a)All entities in a community providing fuel sales (for-profit and non-profit) -must be consulted about a consolidated fuel facility concept and provide written supportoftheproject;b)establishment of a percentage-based formula contribution to be paid by private fuel sale entities for inclusion in the consolidated facility;and c)that the State's role is to assist all entities in the community,whenever possible,and to insure that private enterprise is not negatively impacted. Based upon proposed Federal funding for this project,project level environmental reviews in accordance with the National Environmental Policy Act (NEPA)and the National Historic Preservation Act (NHPA)are required.The Authority shall address all potential environmental concerns (specific and cumulative effects)associated with the projects,identified in this Agreement,in consultation with applicable Federal,State,and local authorities.If the scope of work is changed in the future,then the Authority will revisit the project level environmental reviews to determine if potential environmental concerns must be further addressed.In the interest of streamlining the project level environmental reviews and avoid duplication of effort,any other Federal environmental"review process carried out by the Authority on projects,identified in this Agreement, shall meet the intent of this paragraph. The Authority has agreed,in concert with the Denali Commission,to utilize an agreed- upon amount of Denali Commission funds for the expansion of the Authority's Circuit Rider Program.This program provides for periodic visits to communities by staff or contractors to:a)inspect utility power plants and bulk fuel facilities to ensure reliable and efficient performance of those systems and b)ASSESS conditions of these facilities for datacollection. In the interest of establishing and maintaining an aggressive construction program the following Commission policy shall be employed by AEA.First,AEA shall develop a statewide comprehensive priority list for bulk fuel,rural power upgrade and alternative energy projects.(Note:the Alaska Industrial Development and Export Authority (AIDEA),the parent organization for AEA,through separate Agreement with the Commission for completion of a statewide energy plan has agreed to provide the three separate project lists by December 1,2000.) Award Conditions,Amendment No.5 to Project No.0001-DC1999-I1 Alaska Energy Authority 18. Page 5 August 2001 The second step is for the Commission,working from the top of the priority list,to provide funding for completion of initial project designs,as needed.Any issues requiring resolution prior to full design and construction will be identified and resolved during this phase.If project issues cannot be resolved in a reasonable time frame,the Commission expects AEA to move down the priority list(s)to projects that are ready to proceed to full design and construction.It is expected that the Commission and AEA will meet quarterly to review the progress of projects and collaboratively determine if reasonable progress is being made and what steps should be taken next for those projects requiring further attention. Many issues like facility location,project ownership,construction costs,and operation and maintenance capabilities may require considerable time to resolve.However,these issues must be resolved in a manner that is both satisfactory to the community and is cost effective.Although AEA has a key responsibility to facilitate agreement,the community bears the ultimate responsibility for resolving these issues.As a matter of policy,the Commission wants as much construction to occur during the limited Alaska construction season,yet allow appropriate time for the community to actively participate in the development of the project.Consequently,AEA in consultation with the Commission must decide which projects are ready to proceed well in advance of the construction season,and which are not.Ifa project is determined to be not ready to proceed to construction,AEA shall reallocate Commission funds to projects that are ready for final design and construction.If this occurs,the Commission and AEA shall work together in an effort to assign future funding to the initial project after consensus on design and other project characteristics have been reached. Photographic documentation of project progress shall be provided with the quarterly reports.For full-fledged,active construction projects,photo documentation shall include a minimum of five,dated photos per quarter of current project status,such that a complete record of the construction is maintained over time,from "before,”showing the situation before the start of construction,to "during”showing work proceeding on the project,and "after”to show the finished project.For minor repair and O&M projects;pictures should be provided of before and after to the extent possible.Photos may be provided as photo quality,3x5 prints with negative for each picture,and/or print quality electronic photos (digital images). Project Number(COME,.Ae De =)Financial Assistance Award 0001-DC1999-I1 -Amendment No.5 fa]Z!Denali Commission Accounting Code DENALI COMMISSION 95670000 |FY 1999 Commission $16,274,000\at=510 "L"Street,Suite 410 fundingsDITLUIS95670000;FY 2000 Commission $9,000,000 funding 95670000 |Transfer to project #0023-($540,162) DC-2001-15 95670000 |FY 2000 TAPL funding $5,202,000 Total Commission Funding (1999 &2000)$29,935,838 Funds Available &Apportioned by OMB (LE ipient N FUNDINGRecipientName&Address Denali AEA &other |Totals State of Alaska Commission contributors Alaska Industrial Development and Export Authority Bulk Fuel $19,999,362 |$11,858,054 |$31,857,416 Alaska Energy Authority .Power $8,677,000 $3,200,547 |$11,877,547813W.Northern Lights generation Anchorage,AK 99503 Design,$1,259,476 $100,000 |$1,359,476mmAVTEC, Phone (907)269-3000 other Fax (907)269-3044 Totals $29,935,838 |$15,158,601 |$45,094,439 Authority Project Title Award Performance Period 112 Stat 1854 Bulk Fuel Consolidation Upgrades and Power From:June 3,1999 Generation (FY 1999 &2000)To:October 31,2005 this Award. This Financial Assistance Award approved by the Federal Co-Chair of the Denali Commission is issued in triplicate and constitutes an obligation of federal funding.By signing the three documents,the Recipient agrees to comply with the Award provisions indicated below and attached.Upon acceptance by the Recipient,two signed Award documents shall be returned to the Federal Co-Chair of the Denali Commission and the Recipient shall retain the third document.If not signed and returned without modification by the Recipient within 30 days of receipt,the Federal Co-Chair may unilaterally terminate (_]EDA Standard Terms and Conditions Public Works and Implementations Construction Components,dated 3/99 X Special Award Conditions and Attachments X Line Item Budget X 15 CFR 24,Uniform Admin Requirements for Grants/Cooperative Agreements to State and Local Governments (www.access.gpo.gov/nara/cfr/waisidx 99/15cfr24_99.html) X OMB Circular A-87,Cost Principles for State and Local Governments and Indian Tribal Governments (www.whitehouse.gov/OMB/circulars/a087/a087-all.html) X OMB Circular A-133,Audits of States,Local Governments and Indian Tribal Governments (www.whitehouse.gov/OMB/circulars/a133/a133 html) (_]15 CFR,Part 14,Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education,Hospitals,Other Nonprofit,and Commercial Organizations (www.access.gpo.gov/nara/cfr/waisidx_99/15cfr14_99.html) (-]OMB Circular A-122,Cost Principles for Nonprofit Organizations www.whitehouse.gov/OMB/circulars/a122/a122.htm[-]OMB Circular A-21,Cost Principles for Educational Institutions (www.whitehouse.gov/OMB/circulars/a021/a02 1 html) [-]EDA Standard Terms and Conditions Capacity Building Programs(_]Department of Commerce Financial Assistance Standard Terms and Conditions,dated 10/98 ey,éG Typed Name and Title Robert Poe,Jr.,Executive Director Signature of Auffori fficial -Denali Commission Typed Name and Title Date Jeffrey Staser,Federal Co-Chair al (4 {Ol Date of'4/a Award Conditions to the Financial Assistance Award Amendment No.5 to Project No.0001-DC1999-I1 Bulk Fuel Consolidation Upgrades &Power Generation (1999 &2000) Alaska Energy Authority This Amendment No.5 clarifies the intent of Commission funding for this project in Paragraph 2,including the allowable use of TAPL funds;revises the Project Officers in Paragraph 3;revises Paragraph 8 to delete the need for individual project checking accounts for funds received in advance of need,and emphasizes that reimbursement is the preferred method of requesting payment;incorporates Paragraph 17 to formalize the requirement for periodic project photographs to be submitted.Changes to previous wording are shown in "Bold”typeface. The scope of work for this project includes completion of projects identified under Amendment No.2,as well as 7 individual new projects funded with FY2000 funds. Total Commission funding (FY99 and FY2000)for the Alaska Energy Authority (Authority)through this Agreement is $29,935,838;total funding (including from other sources)is $45,094,439.The term "other contributors”shown on this Agreement shall be defined to include both match funds in accordance with 15 CFR 24,and all other sources of funds used for the projects,whether federal,state or private. Commission funding is intended for use for the scope of work specified above only. Commission funding is intended for use in the three broad areas of a)bulk fuel construction,b)power generation,and c)other projects such as the circuit rider program and AVTEC generator purchase for operator training.Any surplus of funds (on one or more of the projects funded under this Agreement)may be used on other projects, identified under this Agreement that may be experiencing a project shortfall.The intent is not to set aside a specific sum of Commission funding to a particular community,but rather that the projects,identified under this Agreement,are all completed successfully. Shifting of funds between line items of the scope of work within this Agreement may be allowed provided there is no increase in the total funding provided by the Commission,and only if the full scope for these affected projects will be completed as originally set forth.TAPL money may be used only for Bulk Fuel projects. Projects experiencing cost overruns which warrant additional funding will not be funded under this Agreement.Any such additional funds will be provided only under future financial assistance awards.In the event there is a balance of funding after the full scope of work is completed,then the Commission will determine how the excess funds will be allocated. The Project Officers for the Authority are Mr.Chris Mello for purposes of project design and construction and Ms.Sara Fisher-Goad for purposes of financial management.The Project Officer for the Denali Commission is Ms.Kathy Prentki. The Authority shall submit written progress reports to the Commission Project Officer quarterly (January/March,April/June,etc.).The reports are due within 30 calendar days of the end of the quarter.Interim reports are required in the event of significant project events that may extend the project schedule and/or impact the project budget.Quarterly progress reports shall include a narrative summary of the project status and accomplishments to date,and address the following questions:is the project on schedule, Award Conditions,Amendment No.5 to Project No.0001-DC1999-I1 Page 2 Alaska Energy Authority August 2001 is the project on budget,and what actions are planned to address any project problems. These progress reports shall be sent to: Denali Commission 510 "L”Street,Suite 410 Anchorage,AK 99501 The Commission reserves the right,at a future date,to direct the Authority to provide the progress reports in electronic format for posting on the Commission web page. 6.Three forms of project financial and labor reports are required. A.Project financial status reports shall be submitted to the Commission Project Officer quarterly (included as part of the quarterly progress reports).For each project that includes funding from the Denali Commission,the quarterly financial status report shall include the following: i.the total project budget ii.the project schedule with milestone dates for design and construction iii.the total amount of Denali Commission funds committed to the project iv.the total project expenditures as of the end of the most recent quarter v.the total expenditure of Denali Commission funds for the project as of the end of the most recent quarter vi.the percentage of expenditures to the total budget;and vii.a project performance analysis on project line items,as defined by the AEA,showing budget costs compared to actual expenditures and obligations to date versus work performed to date (for each line item). B.A Financial Status Report (Standard Form 269 -www.whitehouse.gov/OMB/erants/index.html#forms)shall be submitted to the Commission Project Officer within 90 days after the end of each anniversary of the initial award date,and a final Financial Status Report shall be submitted within 90 days after the end of the Award Performance Period.For purposes of this financial assistance award,the SF269 shall show actual project match funds only.However,whenever an SF269 is required to be filed,the most recent quarterly financial status report spreadsheet will accompany the SF269.The intent of including the quarterly report with the SF269 is to capture in aggregate,all project expenditures,regardless of the origin of the funds expended. C.A Labor Type,Residence,and Wage Report shall be submitted to the Commission Project Officer at a minimum of two times annually.Ata minimum,these two reports must be submitted on or near August 1"and-December 1*each year to correspond with the Alaska construction season.A Labor Type,Residence,and Wage Report must included the following Award Conditions,Amendment No.5 to Project No.0001-DC1999-I1 Page 3 Alaska Energy Authority 10. 11. 12. August 2001 information by construction project for any person employed on the construction of that project:position,place of primary residence,first check date,last check date,rate of pay per hour,payroll earnings from inception of project to date. The cost principles of OMB Circular A-87 are applicable to this award.Since there are no indirect costs included in the assistance award budget,they are not allowable under this Agreement. The Authority agrees to comply with the requirements of OMB Circular A-133,"Audits of States,Local Governments and Non-Profit Organizations.” To receive payment,the Authority must submit a "Request for Advance or Reimbursement”,Standard Form-270,to the Commission Project Officer.Cost reimbursable payments are approved under this award,and are the preferred method of payment.Reimbursements are based on actual expenditures only. Preferably,AEA shall submit a request for reimbursement on Standard Form-270, along with the quarterly report.However,request for reimbursement is not limited to a quarterly basis.AEA may request reimbursement on a more frequent basis if necessary.Although cost reimbursement is the expected method to receive payment,advance payments may be requested on Standard Form-270 for no more than the amount anticipated to be needed for the following 90 days.It is expected that the Authority will forecast by letter or spreadsheet format,Commission funds or working capital advances needed on a monthly (or as needed)basis for each project.The Commission reserves the right to consolidate project level payments into one payment. This does not preclude more frequent Commission payments,then monthly,given project specific needs.Commission funds received as advance payment shall be subject to interest provisions as set forth in 31CFR205.12.The Commission Project Officer may review all project payments made by AEA from the funds advanced to determine if payments made are justified and supported by appropriate records,invoices and other documentation.The Commission reserves the right to prohibit further payments to the Authority,at any time,if discrepancies involving the advance account funds arise, until such time that the discrepancies are resolved to the satisfaction of the Commission. Pay requests for Authority administrative costs shall be on a separate Standard Form - 270 (quarterly)from project pay requests. To the maximum extent feasible,considering applicable laws,the Authority shall accomplish the work of this Agreement utilizing local labor and small,minority owned and disadvantaged businesses. No portion of this award may be used for lobbying or propaganda purposes as prohibited by 18 U.S.C.Section 1913 or Section 607(a)of Public Law 96-74. Attached to these Award Conditions are the following documents: Award Conditions,Amendment No.5 to Project No.0001-DC1999-I1 Page 4 Alaska Energy Authority August 2001 a.Notes to Amendment No.3 which describe specific project changes b.Spreadsheet of projects sorted alphabetically,and c.Spreadsheet of projects sorted by project type 13. 15. 16. 17. Project budget revisions shall be in accordance with 15CFR24.30(c.iii.2).Written request by letter from the Authority Project Officer to the Commission Project Officer for concurrence is necessary for budget revision approval. Per agreement between the Commission and State of Alaska,a "private enterprise policy” shall be adopted which appropriately considers but is not limited to the following provisions:a)All entities in a community providing fuel sales (for-profit and non-profit) must be consulted about a consolidated fuel facility concept and provide written support of the project;b)establishment of a percentage-based formula contribution to be paid by private fuel sale entities for inclusion in the consolidated facility;and c)that the State's role is to assist all entities in the community,whenever possible,and to insure that private enterprise is not negatively impacted. Based upon proposed Federal funding for this project,project level environmental reviews in accordance with the National Environmental Policy Act (NEPA)and the National Historic Preservation Act (NHPA)are required.The Authority shall address all potential environmental concerns (specific and cumulative effects)associated with the projects,identified in this Agreement,in consultation with applicable Federal,State,and local authorities.If the scope of work is changed in the future,then the Authority will revisit the project level environmental reviews to determine if potential environmental concerns must be further addressed.In the interest of streamlining the project level environmental reviews and avoid duplication of effort,any other Federal environmental"review process carried out by the Authority on projects,identified in this Agreement, shall meet the intent of this paragraph. The Authority has agreed,in concert with the Denali Commission,to utilize an agreed- upon amount of Denali Commission funds for the expansion of the Authority's Circuit Rider Program.This program provides for periodic visits to communities by staff or contractors to:a)inspect utility power plants and bulk fuel facilities to ensure reliable and efficient performance of those systems and b)assess conditions of these facilities for data collection. In the interest of establishing and maintaining an aggressive construction program the following Commission policy shall be employed by AEA.First,AEA shall develop a statewide comprehensive priority list for bulk fuel,rural power upgrade and alternative energy projects.(Note:the Alaska Industrial Development and Export Authority (AIDEA),the parent organization for AEA,through separate Agreement with the Commission for completion of a statewide energy plan has agreed to provide the three separate project lists by December 1,2000.) Award Conditions,Amendment No.5 to Project No.0001-DC1999-I1 Page 5 Alaska Energy Authority 18. August 2001 The second step is for the Commission,working from the top of the priority list,to provide funding for completion of initial project designs,as needed.Any issues requiring resolution prior to full design and construction will be identified and resolved during this phase.If project issues cannot be resolved in a reasonable time frame,the Commission expects AEA to move down the priority list(s)to projects that are ready to proceed to full design and construction.It is expected that the Commission and AEA will meet quarterly to review the progress of projects and collaboratively determine if reasonable progress is being made and what steps should be taken next for those projects requiring further attention. Many issues like facility location,project ownership,construction costs,and operation and maintenance capabilities may require considerable time to resolve.However,these issues must be resolved in a manner that is both satisfactory to the community and is cost effective.Although AEA has a key responsibility to facilitate agreement,the community bears the ultimate responsibility for resolving these issues.As a matter of policy,the Commission wants as much construction to occur during the limited Alaska construction season,yet allow appropriate time for the community to actively participate in the development of the project.Consequently,AEA in consultation with the Commission must decide which projects are ready to proceed well in advance of the construction season,and which are not.Ifa project is determined to be not ready to proceed to construction,AEA shall reallocate Commission funds to projects that are ready for final design and construction.If this occurs,the Commission and AEA shall work together in an effort to assign future funding to the initial project after consensus on design and other project characteristics have been reached. Photographic documentation of project progress shall be provided with the quarterly reports.For full-fledged,active construction projects,photo documentation shall include a minimum of five,dated photos per quarter of current project status,such that a complete record of the construction is maintained over time,from "before,”showing the situation before the start of construction,to "during”showing work proceeding on the project,and "after”to show the finished project.For minor repair and O&M projects,pictures should be provided of before and after to the extent possible.Photos may be provided as photo quality,3x5 prints with negative for each picture,and/or print quality electronic photos (digital images). Amendments to Financial Assistance Awards Page 1 of 1 Mike Harper From:Kathy Prentki [KPrentki@denali.gov] Sent:Friday,September 14,2001 4:13 PM To:Sara L.Fisher-Goad (E-mail);Chris Mello (E-mail);Mike Harper (E-mail);'Karl Reiche (E-mail)'(E-mail);:Imacmillan@aidea.org Ce:Al Ewing;Michelle O'Leary Subject:Amendments to Financial Assistance Awards importance:High Here is a copy of the changes we discussed yesterday.|have highlighted in yellow the new language,andhavedeletedtheparagraphreferringtoprojectcheckingaccounts.The quarterly reports can be submittedwiththeSF269forthedocumentationofotherfunding,rather than a new spreadsheet. |believe these address all the concerns voiced at our meeting,with two exceptions: a)the definition of personnel services/indirect cost issue,which need to be resolved by Bob Poe and Al Ewing,and ---=-- b)the determination if a specific match to the energy program overall should be required in the financialassistanceawards,which would probably be an infra-structure subcommittee item. If anyone has any additional concerns with these awards,please call right away!!We'd like to get them signedMondayifBobPoeisavailable--we need to get the funds obligated for year end before the quarterly meeting. Thanks, Kathy Prentki <<award conditions Amd 1 AEA 0026-DC-2001-18.doc>><<Award Amd 1 AEA 0026-DC-2001-18.doc>> <<Award Amd 5 AEA 0001-DC1999-I1.doc>><<Award Conditions,Amd 5 faa-AEA bulk fuel and power generation -10-20-00_.doc>> 9/14/01 ALASKA INDUSTRIAL DEVELOPMENT a)AND EXPORT AUTHORITY {=A@@™ENERGY AUTHORITY 813 WEST NORTHERN LIGHTS BLVD.©ANCHORAGE,ALASKA 99503 ©907/269-3000 e¢FAX 907 /269-3044 TOLL FREE (ALASKA ONLY)888 /300-8534 September 14,2001 Mr.Al Ewing Chief of Staff Denali Commission 510 L Street,Suite 410 Anchorage,Alaska 99501 Subject:|Request for Denali Commission Grant Funds,September 2001 -Revised Dear Mr.Ewing: The Alaska Energy Authority (AEA)requests funds in the amount of $3,253,000 as detailed below: 1.Bulk Fuel Upgrades:Phase 2 Final Design for twenty-one bulk fuel projects for fall 2001 and construction in 2002:$2.7 million. 2.Rural Power System Upgrades:Phase 1 Conceptual!Design for six (6)proposed rural power system upgrades for fall 2001 and construction in 2002:$300,000. 3.Rural Power System Upgrade:Additional Funding for Stevens Village:$253,000 Bulk Fuel Upgrades:AEA has nineteen active bulk fuel construction projects in 2001.In general, these are two year projects,several were started in 2000,and some will carry over into 2002.When completed,the total value of these nineteen projects will be $42 million.AEA anticipates completing eleven of these projects in 2001,with the remaining eight projects being completed in 2002 (see Attachment A). AEA has identified twenty-one villages (Attachment A)for which a Phase 1 Conceptual Design is expected to be ready this fall.AEA proposes these villages for Phase 2 Final Design funding,so final design work will take place concurrent with preparation of business plans.The requested funding will cover consulting engineering services,construction manager pre-construction services,right-of-way legal services,legal services (Attorney General),and AEA direct labor costs.Some of these villagesmaynotbeabletoachieveafinaldesignorabusinessplan.AEA anticipates that at least ten to fifteen successful projects will be ready to proceed into construction in 2002.This would result in a January 2002 grant request in the range of $25 to $37.5 million. Rural Power System Upgrades:Proposed rural power system upgrade projects are listed in Attachment B. Mr.Al Ewing September 14,2001 Page 2 AEA has not requested funding for active bulk fuel construction projects that require increased funding.AEA and Denali Commission staff are currently discussing the use of TAPL funds to cover cost increases experienced during the 2001 season. We appreciate your consideration of this funding request.Please contact me at 269-3025 if you have any questions. Sincerely, Mike Harper Deputy Director -Rural Energy KER:b/f2001 H:\ALL\bfuglestad\Rural Energy Group\Ltr re fall 2001 funding-revised.doc Attachments CC:Robert Poe,Jr.,Executive Director Karl Reiche,Projects Development Manager Chris Mello,Project Manager David Lockard,Technical Engineer Bryan Carey,Technical Engineer Mark Schimscheimer,Technical Engineer Kris Noonan,Program Manager,Rural Power Systems Sara Fisher-Goad,Accountant Rural Energy Group (R ulk Fuel Upgrade (BFU) Planned Con lon Year 2002 Schedule COR Report |Financial AEA Project Manager Construction Manager Engineer Business Plan Design Construction |Yr Update |($Millions)Contacts 8 S g iCDRYear2001Construction2002Construction2002nne=x m Project CDR Final |start End |2001 Date |Estimate |AEA BP NE cM z f §g é 9 §4 :s 8 5 9 z f .;z a5 5 Ni 6 )7)i ee <|3 ii Aleknagik 15782 1 09/14/01 Bryan]USKH |LOMF STG 1 1 1 1 Chuathbaluk 15780 1 09/14/01 Mark |AE&E |AE&E |Houston 1 1 1 7 Chalkyitsik 15760 1 09/14/01 David |USKH URS URS 1 1 1 3 Beaver 1 09/14/01 David |USKH URS URS 1 1 1 2 Larsen Bay 15779 1 09/14/01 Mark |URS LOMF STG 1 1 1 6 Takotna 15776 1 09/14/01 John |AE&E |AESE |Bristol 1 1 1 2 Venetie 15772 1 09/14/01 David]URS URS URS 1 1 1 2 Akhiok 1 cor14/01 Mark |URS AESE STG 1 1 1 1 Akiachak 1 09/14/01 Mark |LOMF CE2 STG 1 1 1 1 Akutan 1 09/14/01 John |USKH |AE&E URS 1 1 1 5 Chenega Bay 1 09/14/01 Mark |URS LOMF STG 1 1 1 3 Deering 1 cov14/01 John |URS URS uicc 1 1 1 4 Egegik 1 09/14/01 Bryan]LCMF |LOME |Bristol 1 1 1 3 Igiugig 1 09/14/01 David|AESE |A&E CE2 1 1 1 3 Kokhanok 1 09/14/01 David |AGERE |ABE CE2 1 1 1 4 Koyukuk 1 09/14/01 David}LCMF |LCMF |Houston 1 1 1 2 Lime Village 1 09/14/01 John |AE&E |AE&E |Houston 1 1 1 6 Nelson Lagoon 1 09/14/01 John |USKH CE2 Bristol 1 1 1 4 Newhalen 1 09/14/01 David]AE&SE |AESE CE2 1 1 1 5 Port Heiden 1 09/14/01 Bryan}AE&E |AE&E uicc 1 1 1 1 Sand Point 1 914/01 Bryan}URS URS CE2 1 1 1 5 Activity Planned s[7[s|a«s{a[2]s]s]{«6{/s|2is sfe|s|7 Activity in Progress (in design,under construction)[2][2 ][2][2 | Activity Complete > | Significant Schedule Disruption > 2) = m z = > BFU Construction 2002 REG Poe Report xis Printed 9/14/01 Page1of4 Rural Energy Group (REG)Rurai rower Systems Upgrade (RPSU) Active Projects Status Report Schedule Finacial ($Millions) Design Construction |Funding Project Current Budget Contacts Project Status Updated]CDR_Final |Start End |Source Budget Funding Variance|AEA BP AJE CMTuntutuliakGenSetProject,anticipated operation Oct 31,2001 3 'Powerhouse 9/14/01 b,c $1414/8 1414/8 -Kris N/A |AEA/LCMF|AEA Kotlik Power Hs Prict,anticipated operation Dec 01,building .AEAPowerhouseconstructioncomplete,generator installation 9/14/01 bic $185/$1.85)$,Kris N/A CMF AEAArcticVillagePowerHsPrict,affected by FAA schedule and site F Powerhouse location,similar to BFU 9/14/01 b,c $079/$0.75/$(0.04)/Kris N/A |AEA/LCMF|AEA Hughes Power Hs &Distr Prject,village has lost CDBG of . Powerhouse &Distibution _|$200K,applying for $500K ICDBG,project on hold.9/14/01 b,c $1.47|/$097/$(0.50)|]Kris NA AEA AEA Koyukuk Distribution Pict,expected completion fall '02,grant ' Distribution Syetem pending approval 9/14/01 b,c $055/$050)$(0.05))Kris N/A AEA AEA Newtok Distribution Pjct,expected completion fall '02,with F Distribution System house project.9/14/01 b,c $O50/1$0O50/$.Kris N/A AEA AEA Stevens Village Power Hs Prjct &DOTPF Line Ext,completion . Powerhouse spring'02,build&found under construction 9/14/01 abc $1.20 |$1.20 |$.Kris WA LOMF AEATulukeakPHsPrict,Busi Plani ,building &; Powerhouse fundationodaed |84a abe |$1.50/$1.33]$(0.17)|Kris CE2 |AEACE2|AEA Old Harbor (hydro)AVEC Prict,new plan expected 9/14/01 be |$240/$240/$-|Peter |NA AVEC Engineer Polar Consultants have determinedFAtka(hydro)fionvenotteqied ERC |9/14/01 be |$070/$O070/$-|Peter |NA PC Golovin New project,request CDR &BP monies from DCPowerhouse""9/14/01 b $140/$-|$(1.40)[Lenny |LoMF |LCMF AEA Kwigillingok New project,request CDR &BP monies from DC . Powerhouse Project,req 9/14/01 $1.70|$-|$(1.70)!Kris LOMF |LOMF |STG/AEA Newtok j iPovehoueeNewproject,request COR &BP monies fromDC |a4 ging b {$165/$-|$(1.65)!Lenny |Lome |Lome |STG/AEA Kongiganak New project,request COR &BP monies from DC A Powerhouse &Distribution 9/14/01 b $235/$-$(2.35)]Kris LOMF LCMF |STG/AEA Atmautiuak New project,request CDR &BP monies from DC . Distribution 9/14/01 b $085/$-|$(0.85)}Kris LOMF LOMF AEA Manokatak New project,request CDR &BP monies from DC Powerhouse }Project,req 9/14/01 b $1901$-|$(1.80)]Lenny |LcMF |LOMF AEA Totals:|$22.22 $11.61 $(10.61)] Activity Planned Funding Source Codes A_ICDBG BDC C Other Accounting Data Updated :_unknownActivityinProgress(in design,under construction) > =| -_> QO a = m = - Lvs RPSU REG Poe Report.xls Printed 9/14/01 Page 1 of 1 Denali Loman.ats/$49)3 lee, Project Number WA 0026-DC-2001-I8-Amendment No.1 Denali Commission Accounting Code 95670000 FY01 Commission 6,332,846.00 Funding Financial Assistance Award 95670000 FY01 TAPL Funding 4,414,695.50 DENALI COMMISSION 510 "L"Street,Suite 410 Anchorage,Alaska 99501 (907)271-1414 Total Commission Funding 10,747,541.50 Funds Available &Apportioned by OMB Peotstiarepistrivitien 5,Recipient Name &Address :FundingDenaliOther TotalsStateofAlaskaCommissioncontributorsAlaskaIndustrialDevelopmentandExportAuthority Alaska Energy Authority Bulk Fuel 4,414,695.50 0 4,414,695.50 813 W.Northern Lights RPSU 1,400,000 |1,218,500.00]2,618Anchorage,AK 99503 _eS 618,500.00 Other 4,932,846.00 0 4,932,846.00 Phone (907)269-3000 Totals 10,747,541.50 |1,218,500.00 |11,966,041.50Fax(907)269-3044 a ee oe Authority Project Title .Award Performance Period 112 Stat 1854 Bulk Fuel Consolidation Upgrades &Power From:April 19,2001 Generation To:January 1,2007 This Financial Assistance Award approved by the Federal Co-Chair of the Denali Commission is issued in triplicate and constitutes an obligation of federal funding.By signing the three documents,the Recipient agrees to comply with the Award provisions indicated below and attached.Upon acceptance by the Recipient,two signed Award documents shall be returned to the Federal Co-Chair of the Denali Commission and the Recipient shall retain the third document.If not signed and returned without modification by the Recipient within 30 days of receipt,the Federal Co-Chair may unilaterally terminate this Award. [-]EDA Standard Terms and Conditions Public Works and Implementations Construction Components,dated 3/99 Special Award Conditions and Attachments (J Line Item Budget {XJ 15 CFR 24,Uniform Admin Requirements for Grants/Cooperative Agreements to State and Local Governments (www.access.gpo.gov/nara/cfr/waisidx _99/15cfr24_99.html) >]OMB Circular A-87,Cost Principles for State and Local Governments and Indian Tribal Governments (www.whitehouse.gov/OMB/circulars/a087/a087-all.html) ><]OMB Circular A-133,Audits (www.whitehouse.gov/OMB/circulars/a133/a133.bhtml)[-]15 CFR,Part 14,Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education,Hospitals,Other Nonprofit,and Commercial Organizations (www.access.gpo.gov/nara/cfr/waisidx_99/15cfrl14_99.html) [_]OMB Circular A-122,Cost Principles for Nonprofit Organizations (www.whitehouse.gov/OMB/circulars/al22/a122html)[-]OMB Circular A-21,Cost Principles for Educational Institutions (www.whitehouse.gov/OMB/circulars/a021/a021 html) [_]EDA Standard Terms and Conditions Capacity Building Programs [-]Department of Commerce Financial Assistance Standard Terms and Conditions,dated 10/98 Rev:01/01 <Ciliis Project Number aoe:Ki e .e&oe "S S Financial Assistance Award 0001-DC1999-I1 -Amendment No.5 a zi Denali Commission Accounting Code = DENALI COMMISSION 95670000 |FY 1999 Commission $16,274,000Ata510"L"Street,Suite 410 fundingAnchorage,Alaska 99501 - (907)271-1414 95670000 |FY 2000 Commission $9,000,000 funding 95670000 |Transfer to project #0023-($540,162) DC-2001-15 95670000 |FY 2000 TAPL funding $5,202,000 Total Commission Funding (1999 &2000)|$29,935,838 Funds Available &Apportioned by OMB . Cost Share Distribution Recipient Name &Address Denali AEA &other Totals State of Alaska Commission contributors Alaska Industrial Development and Export Authority Bulk Fuel |$19,999,362 |$11,858,054 |$31,857,416 Alaska Energy Authority Power $8,677,000 $3,200,547 |$11,877,547813W.Northern Lights generation Anchorage,AK 99503 Design,$1,259,476 $100,000 $1,359,476 AVTEC, Phone (907)269-3000 other Fax (907)269-3044 Totals $29,935,838 |$15,158,601 |$45,094,439 Authority Project Title Award Performance Period 112 Stat 1854 Bulk Fuel Consolidation Upgrades and Power From:June 3,1999 Generation (FY 1999 &2000)To:October 31,2005 This Financial Assistance Award approved by the Federal Co-Chair of the Denali Commission is issued in triplicate and constitutes an obligation of federal funding.By signing the three documents,the Recipient agrees to comply with the Award provisions indicated below and attached.Upon acceptance by the Recipient,two signed Award documents shall be returned to the Federal Co-Chair of the Denali Commission and the Recipient shall retain the third document.If not signed and retumed without modification by the Recipient within 30 days of receipt,the Federal Co-Chair may unilaterally terminate this Award. [_]EDA Standard Terms and Conditions Public Works and Implementations Construction Components,dated 3/99 X Special Award Conditions and Attachments X Line Item Budget X 15 CFR 24,Uniform Admin Requirements for Grants/Cooperative Agreements to State and Local Governments www.access.gpo.gov/nara/cfr/waisidx 99/15cfr24_99.html) X OMB Circular A-87,Cost Principles for State and Local Governments and Indian Tribal Governments (www.whitehouse.gov/OMB/circulars/a087/a087-all.html) X OMB Circular A-133,Audits of States,Local Governments and Indian Tribal Governments (www.whitehouse.gov/OMB/circulars/al 33/a133.html) (-]15 CFR,Part 14,Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education,Hospitals,Other Nonprofit,and Commercial Organizations (www.access.gpo.gov/nara/cfr/waisidx_99/15cfr14_99.html) (_]OMB Circular A-122,Cost Principles for Nonprofit Organizations (www.whitehouse.gov/OMB/circulars/al122/a122.html)[-]OMB Circular A-21,Cost Principles for Educational Institutions (www.whitehouse.gov/OMB/circulars/a021/a021 html) [_]EDA Standard Terms and Conditions Capacity Building Programs [_]Department of Commerce Financial Assistance Standard Terms and Conditions,dated 10/98 FINANCIAL STATUS REPORT (Long Form) (Follow instructions on the back) 1.Federal Agency and Organizational Element 2.Federal Grant or Other Identifying Number Assigned OMB Approval |Page of to Which Report is Submitted By Federal Agency No. 0348-0039 pages 3.Recipient Organization (Name and complete address,including ZIP code) 4.Employer Identification Number 5.Recipient Account Number or Identifying Number |6.Final Report 7.Basis Ol Yes ONo Ol Cash Of Accrual 8,Funding/Grant Period (See instructions) From:(Month,Day,Year)To:(Month,Day,Year) 9.Period Covered by this Report From:(Month,Day,Year)To:(Month,Day,Year) 10.Transactions:i Previously Reported t This Period ul Cumulative a.Total outlays b.Refunds,rebates,etc. c.Program income used in accordance with the deduction aiternative d.Net outlays (Line a,iess the sum of lines b and c) Recipient's share of net outlays,consisting of: Chk fF h DEGLe. sharing alternative "Oukhi h.All other recipient outlays not shown on lines e,f org Cost-Sha yiTotalrecipientshareofnetoutlays(Sum of lines e,f,g and h) j.Federal share of net outlays (line d less line i) k.Total unliquidated obligations |.Recipient's share of unliquidated obligations m.Federal share of unliquidated obligations h.Total Federal share (sum of lines j and m) 0.Total Federai funds authorized for this funding period p.Unobligated balance of Federal funds (Line o minus line n) Program income,consisting of: q.Disbursed program income shown on lines ¢and/or g above r.Disbursed program income using the addition alternative s.Undisbursed program income t Total program income realized (Sum of lines q,r and s) goveming legislation. a.Type of Rate (Place "X”in appropriate box) 141.Indirect {1 Provisional Cl Predetermined C1 Final Cl Fixed Expense b.Rate ¢.Base d.Total Amount e.Federal Share 12.Remarks:Attach any explanations d d ry or inte ion required by Federal sponsoring agency in compliance with 13.Certification: ry d ohij \certify to the best of my knowledge and belief that this report is correct and complete and that all outiays and ions are for the purposes set forth in the award di Typed or Printed Name and Title Telephone (Area code,number and extension) Signature of Authorized Certifying Official \ Date Report Submitted Previous Edition Usable NSN 7540-01-012-4285 269-104 200-498 P.O.139 (Face) Standard Form 269 (Rev.7-97) Prescribed by OMB Circulars A-102 and A-110 §24.22 (ii)The grantee or subgrantee is in- debted to the United States. (2)Cash withheld for failure to com- ply with grant award condition,but without suspension of the grant,shall be released to the grantee upon subse- quent compliance.When a grant is sus- pended,payment adjustments will be made in accordance with §24.43(c). (3)A Federal agency shall not make payment to grantees for amounts that are withheld by grantees or sub- grantees from payment to contractors to assure satisfactory completion of work.Payments shall be made by the Federal agency when the grantees or subgrantees actually disburse the with- held funds to the contractors or to es- crow accounts established to assure satisfactory completion of work. _(a)Cash depositories.(1)Consistent with the national goal of expanding the opportunities for minority business en- terprises,grantees and subgrantees are encouraged to use minority banks (a bank which is owned at least 50 percent by minority group members).A list of minority owned banks can be obtained from the Minority Business Develop- ment Agency,Department of Com- merce,Washington,DC 20230. (2)A grantee or subgrantee shall maintain a separate bank account only when required by Federal-State agree- ment. (i)Interest earned on advances.Except for interest earned on advances of funds exempt under the Intergovern- mental Cooperation Act (31 U.S.C.6501 et seg.)and the Indian Self-Determina- tion Act (23 U.S.C.450),grantees and subgrantees shall promptly,but at least quarterly,remit interest earned on advances to the Federal agency.The grantee or subgrantee may keep inter- est amounts up to $100 per year for ad- ministrative expenses. §24.22 Allowable costs. . (assee muse:Of;funds Grant(eThe-"allowable:'Costs:of.ther grant-eese:subgrantéés'andcost-type contraé- tors,;including=.allowable:'eosts®1:tthe (2):Reason J icremént above allow-profit (or'other™uti notiany:.fee or etherror bothof the following?==: 15 CFR Subtitle A (1-1-01 Edition) ables-costs);to.;the:grantéé"or™sub: eApplicablé-cocost"st principles.For each kind of organization,there is a set of Federal principles for determining al- lowable costs.Allowable costs will be determined in accordance with the cost principles applicable to the organiza- tion incurring the costs.The following chart lists the kinds of organizations and the applicable cost principles. For the costs of a-Use the principles in- State,.Jocal or indian-tribalsen-]OMB.Circular:-A-BR* Private nonprofit organization |OMB Circular A 122.other than an (1)institution of higher education,(2) hospital,or (3)organization named in OMB Circular A- 122 as not subject to that circular, Educational institutions.......... For-profit organization other than a hospital and an or- ganization named in OBM Circular A-122 as not sub- ject to that circular. OMB Circular A-21. 48 CFR Part 31.Contract Cost Principles and Proce- dures,or uniform cost ac- counting standards that comply with cost principles acceptable to the Federal agency. §24.23 Period of availability of funds. (a)General.Where a funding period is specified,a grantee may charge to the award only costs resulting from obliga- tions of the funding period unless car- ryover of unobligated balances is per- mitted,in which case the carryover balances may be charged for costs re- sulting from obligations of the subse-- quent funding period.- (b)Liquidation of obligations.A grant- ee must liquidate all obligations in- curred under the award not later than 90 days after the end of the funding pe- riod (or as specified in a program regu- lation)to coincide with the submission of the annual Financial Status Report (SF-269).The Federal agency may ex- tend this deadline at the request of the grantee. §24.245Matching'or cost sharing." (a)Basic rule:Costs and contributions .,acceptable.With:the:.qualifications*and” excéptions:listed«in-paragraph:-(b):of=" this:sections a:matching:or cést'sha ing requirement.may be.satisfied by'ei2 Stasct 228 Office of the Secretary,Commerce reilirements-appliss”; (bo)Qualifications and exceptions-(1).Costs borne by other Federal grant agree-ments.Except:asx3:Provided,lyDY. 4 ett Dye"Costsbornesby:anothers:Fed6falr:grants Thisprohibitiondoesnotapplytoincome earned by a grantee or subgrantee from a contract awarded under another Fed- eral grant. (2)General revenue sharing.For the purpose of this section,general revenue sharing funds distributed under 31 U.S.C.6702 are not considered Federal grant funds. §24.24 pressly permit this kind of income to be used to meet the requirement. (6)Records.Costs and third party in-kind contributions counting towards satisfying a cost sharing or matchingrequirementmustbeverifiablefrom the records of grantees and subgrantee or cost-type contractors.These records T™must show how the value placed on third party in-kind contributions was derived.To the extent feasible,volun-teer services will be supported by the same methods that the organization uses to support the allocability of reg-ular personnel costs. (7)Special standards for third party in-kind contributions.(i)Third party in- kind contributions count towards sat- isfying a cost sharing or matching re- quirement only where,if the party re- ceiving the contributions were to payforthem,the payments would be allow- able costs. (ii)Some third party in-kind con- tributions are goods and services that,(DerCostzo'wardsotherFederalcosis-sharing ¥eGire.*Neither:costs"Hoe thérvalué:or”part -kind..contribution Aye2ieaSgrant (4)Costs financed by program income.Costs financed by program income,asdefinedin§24.25,shall not count to- wards satisfying a cost sharing ormatchingrequirementunlesstheyare expressly permitted in the terms of the assistance agreement.(This use of gen-eral program income is described in §24,.25(e).) (5)Services or property financed by in-come earned by contractors.Contractors under a grant may earn income from the activities carried out under the contract in addition to the amounts earned from the party awarding the contract.No costs of services or prop-erty supported by this income maycounttowardsatisfyingacostsharingormatchingrequirementunlessother provisions of the grant agreement ex- =Contributions™Counted to=if the grantee,subgrantee,or con- tractor receiving the contribution had to pay for them,the payments would have been an indirect costs.Costs shar- »ing or matching credit for such con- tributions shall be given only if the «grantee,subgrantee,or contractor has .eStablished,along with its regular indi- rect cost rate,a special rate for allo- cating to individual projects or pro- grams the value of the contributions. (iii)A third party in-kind contribu- tion to a fixed-price contract may count towards satisfying a cost sharing or matching requirement only if it re- sults in: (A)An increase in the services or property provided under the contract (without additional cost to the grantee or subgrantee)or (B)A cost savings to the grantee orsubgrantee. (iv)The values placed on third partyin-kind contributions for cost sharingormatchingpurposeswillconformto the rules in the succeeding sections of this part.If a third party in-kind con- tribution is a type not treated in those sections,the value placed upon it shall be fair and reasonable. 229 match and the "other”local commitment provided.Additionally,in the same spreadsheet,actual expenditures to date will be reported for each project (community). However,only those expenses that are CPP reimbursable and the amount of local cash match provided will be reported.Expenses relating to "other”local commitment provided will not be monitored or reported. The following is an example of how the financial aspect of this quarterly report will be presented: Anticipated Project Amount Actual Quarterly Expenses (Budget Submitted By Community)(To Be Reported As Part Of The Performance Report) Projects/CPP Grant |CPP Other Local Total CPP CPP Total CPP Communities |Amount Local ©Commitment |Project Reimbursable |Local Reimbursable Cash Provided Amount Cash &CPP Local Match Match Cash Match (66%)(10%)(24%)(100%) Name of 200.000 20.000 80,000 300,000 200,000 20.000 220.000 Community FINAL PERFORMANCE REPORT:The final written performance report should be submitted no later than 90 days from the expiration date of this award,and should include photo documentation of the individual projects.At a minimum,the final performance report should include "before”,"during”and "after”photos,showing (a)the situation before the start of construction,(b)people working on the project,and (c)the finished project.Photo documentation should be supplied in the form of photo quality 3x5 prints and/or print quality electronic photos (digital images). To compile these photographs,DCED will strongly encourage the sub-recipient grantees (communities)to take pictures of the individual projects in the various stages of construction,as specified in the preceding paragraph,and to identify those photographs for immediate submission to DCED.It is the sole responsibility of the sub-recipient grantees to take and produce the photographs.DCED merely serves as a compiler of the photographs and will not be held lable if any of the sub-recipient grantees fai]to comply. LABOR TYPE,RESIDENCE AND WAGE REPORT:A Labor Type,Residence, and Wage Report shal]be submitted to the Commission Project Officer at a minimum of two times annually.At a minimum,these two reports must be on or near August 1°and December 1*each year to correspond with the Alaska construction season.Reports may be submitted more often.A Labor Type,Residence,and Wage Report must include the following information by construction project for any person employed on the construction of that project:position,place of primary residence,first check date,last check date,rate of pay per hour,payroll earnings from inception of project to date. Award Conditions -Page 2 Award Conditions to the Financial Assistance Award Amendment No.21 to Project No.0026-DC-2001-I8 FY2001 Bulk Fuel Consolidation Upgrades &Power Generation 2001 Alaska Energy Authority This Amendment No.1 adds the second installment of TAPL funding for this +2. financial assistance award and provides additional TAPL funding for project overruns at Kotlik and Allakaket;clarifies intent of Commission funding for this project in Paragraph 2,including the allowable use of TAPL funds,revises Paragraph 8 to delete the need for individual project checking accounts for funds received in advance of need and emphasizes that reimbursement is the preferred method of requesting payment;and incorporates Paragraph 16 to formalize the requirement for periodic project photographs to be submitted.Changes to previous wording are shown in "Bold”typeface. The scope of work under this Financial Assistance Award as-ofAugust,2001 is-to(the"Agreement'”)is toperform the Planning and construct'the Projects listed on the attached 23.ap4.5. spreadsheet.Com:2 sifiedabove-cnk,Any surplus of funds (on one or moreof the projects funded under this Agreement)may be used on other projects,identified under this Agreement that may be experiencing a project shortfall.The intent is not to set aside a specific sum of Commission funding to a particular community,but rather that the projects on the attached spreadsheet are all completed successfully.Shifting of costsfunding between project lineitenas,removing projects or adding new projecisitems bythe AEAis allowedprovidedthereisnoincreaseinthetotalfundingprovidedbytheCommission,and TAPL money may be used only for Bulk Fuel projects...The Commission Project Officer is to be copied on all revisions to the spreadsheet. Budget revisions to Commission funding shall be in accordance with 15CFR24.30 (c)(2).Written request by letter from the AEA Project Officer to the Commission Project Officer for concurrence is necessary for budget revisions where projects are added or deleted or that would result in the need for additional Commission funds. The Project Officers forthe AEA are Mr.Chris Mello for purposes of project design and construction and Ms.Sara Fisher-Goad for purposes of financial management.The Project Officer for the Denali Commission is Ms.Kathleen Prentki. The-AEA shall submit written progress reports to the Commission Project Officer quarterly (January/March,April/June,etc.).The reports are due within 30 calendar days of the end of the quarter.Interim reports are required in the event of significant project events that may extend the project schedule and/or impact the project budget.Quarterly progress reports shall include a narrative summary of the project status and accomplishments to date,and address the following questions:is the project on schedule,is the project on budget,and what actions are planned to address any project problems.These progress reports shall be sent to: Award Conditions,Amendment 1 to Project No.0026-DC-2001-I8 Page 2 Alaska Energy Authority August 2001 Denali Commission 510 "L”Street,Suite 410 Anchorage,AK 99501 The Commission reserves the right,atafuture-date,to directthe AEA to provide the progress reports in electronic format for posting on the Commission web page. 5-6.ProjectFour forms of project financial and labor reports are required. A.Project financial status reports shall be submitted to the Commission Project Officer quarterly (included as part of the quarterly progress reports).For each project that includes funding from the Denali Commission,the quarterly financial status report shall showinclude the following: i.the total project budget il.the project schedule with milestone dates for design and construction iii.the total amount of Denali Commission funds committed to the project iv.the total project expenditures as of the end of the most recent quarter v.the total expenditure of Denali Commission funds for the project as of the end of the most recent quarter Vi.the percentage of expenditures to the total budget;and vii.|a project performance analysis on project line items,as defined by the AEA, showing budget costs compared to actual expenditures and obligations to date versus work performed to date (for each line item). B.Monthly project checking account summaries (or at other intervals as requested by the Commission Project Officer)for each project and revolving fund account summary shall be provided to the Commission Project Officer. B.A-Gnal Financial Stats RepertA Financial Status Report (Standard Form 269-www.whitehouse.ae statis neame forms)shall besubmittedto-theuS-2 he-end-ofshall be submitted to the theeach anniversaryof the initial awardaward date.)C.date,and a final Financial Status Report shall be submitted within 90 days after the end of the Award Performance Period. D.A Labor Type,Residence,and Wage Report shall be submitted to the CommissionProjectOfficerataminimumoftwotimesannually.Ata minimum,these tworeportsmustbesubmittedonornearAugust1andDecember1"each year tocorrespondwiththeAlaskaconstructionseason.Reports maybe -submittedmore Award Conditions,Amendment 1 to Project No.0026-DC-2001-I8 Page 3 Alaska Energy Authority August 2001 7. efen-A Labor Type,Residence,and Wage Report must included the following information by construction project for any persondivectly employedby-the Community on the construction of that project:position,place of primary residence, first check date,last check date,rate of pay per hour,payroll earnings from inception of project to date. Indirect costs (see OMB Circular A-87)are not allowable under this Agreement. 6 To receive payment,the Authority must submit a "Request for Advance or Reimbursement”, Standard Form-270,www.whitehouse.gov/OMB/grants/index.html#forms,to the 'Commission Project Officer.Cost reimbursable payments are approved under this award,and are the preferred method of payment.Reimbursements are based on actual expenditures only.Preferably,AEA shall submit a request for reimbursement on Standard Form-270,along with the quarterly report.However, request for reimbursement is not limited to a quarterly basis-onl.AEA may request reimbursement on a more frequent basis if necessary.Thefinalrequestfor requested,andthe matchrequirement-Although cost reimbursement is the expected method to receive payment,advance payments may be requested on Standard Form- 270, Form-270 for no more than the amount anticipated to be needed for the following 90 days. It is expected that the Authority will forecast by letter or spreadsheet +format,Commission funds or working capital advances needed on a monthly (or as needed) basis for each project.The Commission reserves the right to consolidate project level payments into one payment.This does not preclude more frequent Commission payments,then monthly,given project specific needs.Commission funds received as advance payment shall be subject to interest provisions as set forth in 31CFR205.12. The Commission Project Officer may review all project payments made by AEA from the funds advanced to determine if payments made are justified and supported by appropriate records,invoices and other documentation.The Commission reserves the right to prohibit further payments to the AEA,Authority,at any time,if discrepancies involving Gommissionthe advance account funds arise,until such time that the discrepancies are resolved to the satisfaction of the Commission. Pay requests for Authority administrative costs shall be on a separate Standard Form -270 °(quarterly)from project pay requests. To the maximum extent feasible,considering applicable laws,the AEA shall accomplish the work of this Agreement utilizing local labor and small,minority owned and disadvantaged businesses. Award Conditions,Amendment 1 to Project No.0026-DC-2001-I8 Page 4 Alaska Energy Authority August 2001 10.No portion of this award may be used for lobbying or propaganda purposes as prohibited os Ql. 10, 40,12. 13. i 1214. 15. by 18 U.S.C.Section 1913 or Section 607(a)of Public Law 96-74. Fhe-AFA agrees to comply with the Commission'sdraf private enterprise poicyfand-_the-final policy when-completed),policy,a draft of whichis attached hereto and made a part hereof. Based upon proposed Federal funding,project level environmental reviews in accordance with the National Environmental Policy Act (NEPA)and the National Historic Preservation Act (NHPA)are required for each project undertaken with Denali Commission funds.In accordance with NEPA and NHPA legislation,the-AEA shall address all potential environmental concerns (specific and cumulative effects)associatedwiththeprojects,identifiedin this Agreement,in consultation with applicable Federal,State,and local authorities.If the scope of workis changedin the future,thenthe AEA will revisit the project level environmental reviews to determine if potential environmental concerns must be further addressed.In the interest of streamlining the project level environmental reviews and to avoid duplication of effort,any other FederalAgencyenvironmentalreviewprocesscarriedoutbytheAEAonprojects,identifiedinthisAgreement,shall meet the intent of this paragraph. AEA shall evaluate the condition of bulk fuel storage facilities and electric utility systems in rural Alaska,and will developa list of these facilities ranked in the order of their physical condition.AEA will also acquire information on the operations and maintenance performance of rural electric utilities that may be incorporated in the project selection process. The electric utility systems and bulk fuel systems receiving the benefit of Commissionfundingmmusttbesustainable.3 Phe-Comm *b ill collaborate-to-establish em-meet theattachedsustainabilitycriteria. There are many issues Kkesuch as facility location,project ownership,construction costs,and compliance with sustainability criteria that require resolution prior to proceeding with full design and construction.If project issues cannot be resolved in a reasonable time frame,the Commission expects AEA to move down the priority list(s)to projects that are ready to proceed to full design and construction.It is expected that the Commission and AEA Project Officers will meet quarterly to review the progress of projects and collaboratively determine if reasonable progress is being made and what steps should be taken,if any,to deal with new developments encountered in the design and construction process. | Award Conditions,Amendment 1 to Project No.0026-DC-2001-I8 Page5 Alaska Energy Authority August 2001 16._Photographic documentation of project progress shall be provided with the quarterly reports.For full-fledged,active construction projects,photo documentation shall include a minimum of five,dated photos per quarter of current project status,such that a complete record of the construction is maintained over time,from "before,”showing the situation before the start of construction,to "during”showing work proceeding on the project,and "after”to show the finished project.For minor repair and O&Mprojects,pictures should be provided of before and after to the extent possible.Photos may be provided as photo quality,3x5 prints with negative for each picture,and/or print quality electronic photos (digital images). Award Conditions to the Financial Assistance Award Amendment No.5 to Project No.0001-DC-1999-I1 Bulk Fuel Consolidation Upgrades &Power Generation (1999 &-2000)| Alaska Energy Authority 1.This Amendment No.5 clarifies the intent of Commission funding for thisproject in Paragraph 2,including the allowable use of TAPL funds;revises the Project Officers in Paragraph 3;revises Paragraph 8 to delete the need for individual project checking accounts for funds received in advance of need,and emphasizes that reimbursement is the preferred method of requesting payment;incorporates Paragraph 17 to formalize the requirement for periodic project photographs to be submitted.Changes to previous wording are shown in "Bold”typeface. i,The scope of work for this project includes completion of projects identified under Amendment No.2,as well as 7 individual new projects funded with FY2000 funds.Total Commission funding (FY99 and FY2000)for the Alaska Energy Authority (Authority) through this Agreement 1is $29,73°,838;total funding under this Financial "Assistancesproadsheet-(including from othersources)i1S$45,094,439,Commission funding i1S intended for use for the scope of work specified above only.Commission fundingis intended for use in the three broad areas of a)bulk fuel construction,b)power generation, and c)other projects such as the circuit rider program and AVTEC generator purchase for operator training.Any surplus of funds (on one or more of the projects funded under this Agreement)may be used on other projects,identified under this Agreement that may be experiencing a project shortfall.The intent is not to set aside a specific sum of | Commission funding to a particular community,but rather that the projects-on-the attached -spreadshectprojects,identified under this Agreement,are all completed successfully.TAPL money may be used only for Bulk Fuel projects.Projects experiencing cost overruns which warrant additional funding will not be funded 'under this project.Any such additional funds will be provided only under Project 0026-DC-2001-18 or future financial assistance awards.is.Shifting of costsbetweenprej¢2 m0 jects-oradd siccts Written request by lower fromthe AEA Project Officer toline ititemssof the scopeSof workmaybeallowedwithpriorwrittenapprovalfromtheCommissionProjectOfficer.In the - event thereis a balance of funding after the full scope of workis completed.thenn theadditionalCommissionfandsCommissionwilldeterminehowthe«excess funds will be allocated. 3.The Project Officers for the AEAAuthority are Mr.Chris Mello for purposes of project design and construction and Ms.Sara Fisher-Goad for purposes of financial management.The Project Officer for the Denali Commission is Ms.KathleenKathy Prentki. Award Conditions,Amendment No.5 to Project No.0001-DC1999-I1 Page 2 Alaska Energy Authority August 2001 4.The AEAAuthority shall submit written progress reports to the Commission Project Officer quarterly (January/March,April/June,etc.).The reports are due within 30 calendar days of the end of the quarter.Interim reports are required in the event ofsignificantprojecteventsthatmayextendtheprojectscheduleand/or impact the project budget.Quarterly progress reports shall include a narrative summary of the project status and accomplishments to date,and address the following questions:is the project on schedule,is the project on budget,and what actions are planned to address any project problems.These progress reports shall be sent to: Award Conditions,Amendment No.5 to Project No.0001-DC1999-I1 Page 3 Alaska Energy Authority August 2001 Denali Commission 510 "L”Street,Suite 410 Anchorage,AK 99501 The Commission reserves the right,at a future date,to direct the AEAAuthority to provide the progress reports in electronic format for posting on the Commission web page. ProjectThree forms of project financialandtabos reports are required. A.Project financial status reports shall be submitted to the Commission Project Officer quarterly (included as part of the quarterly progress reports).Foreach-projectthat inchides funding -fom-the Denali Commission,Includedin the quarterly financialstatusreportsshallshow-the following: wikA.be:beaa projectt performance analysis onn budgeted 5project line items,as defined by theAEA,Authority,showing budget costs compared to actual expenditures and obligations to date versus work performed to date (for each line item). B.Monthly project checking account summaries (or at other intervals as requested by the Commission Project Officer -but not more frequently than monthly)for each community and revolving fund account summary shall be provided to the Commission Project Officer (see Paragraph No.7 below). B.C._A final Financial Status Report (Standard Form 269-www.whitehouse.gov/OMB/erants/index.html#forms)shall be submitted to the Commission Project Officer within 90 days after the end of the Award Performance Period.If the Period is longer then one year,or if the Agreement is revised to extend the Award Performance Period beyond one year,the AEAAuthority must annually submit a completed Standard EermFrom 269 within 90 days after the end of each anniversary of the award date. The cost principles of OMB Circular A-87 are applicable to this award.Since there are no indirect costs included in the assistance award budget,they are not allowable under this Agreement. The Authority agrees to comply with the requirements of OMB Circular A-133,"Audits of States,Local Governments and Non-Profit Organizations.” Award Conditions,Amendment No.5 to Project No.0001-DC1999-I1 Page 4 Alaska Energy Authority August 2001 6-Officer.Cost reimbursable payments are approved under this award,and are the preferred method of payment.Reimbursements are based on actual expenditures only.Preferably,AEA shall submit a request forreimbursement on Standard Form-270,along with the quarterly report.However,request for reimbursement is not limited to a quarterly pase en AEA may request reimbursement on a more Award Conditions,Amendment No.5 to Project No.0001-DC1999-I1 Page 5 Alaska Energy Authority August 2001 selection-process,expected method to receive payment,advance payments may be requested on Standard Form-270 for no more than the amount anticipated to be needed for the following 90 days.It is expected that the Authority will forecast by letter or spreadsheet format,Commission funds or working capital advances needed on a monthly (or as needed)basis for each project.The Commission reserves the right to consolidate project level payments into one payment.This does not preclude more frequent Commission payments,then monthly,given project specific needs.Commission funds received as advance payment shall be subject to interest provisions as set forth in 31CFR205.12.The Commission Project Officer may review all project payments made by AEA from the funds advanced to determine if payments made are justified and supported by appropriate records,invoices and other documentation.The Commission reserves the right to prohibit further payments to the Authority,at any time, if discrepancies involving the advance account funds arise,until such time that the discrepancies are resolved to the satisfaction of the Commission.Pay requests for Authority administrative costs shall be on a separate Standard Form -270 (quarterly) from project pay requests. 9.___To the maximum extent feasible,considering applicable laws,the Authority shall accomplish the work of this Agreement utilizing local labor and small,minority owned and disadvantaged businesses. 10.___No portion of this award may be used for lobbying or propaganda purposes asprohibited by 18 U.S.C.Section 1913 or Section 607(a)of Public Law 96-74. 11.|Attached to these Award Conditions are the following documents: a.Notes to Amendment No.3 which describe specific project changes b.Spreadsheet of projects sorted alphabetically,and c.Spreadsheet of projects sorted by project type 12._Project budget revisions shall be in accordance with 15CFR24.30(c.iii.2).Written request by letter from the Authority Project Officer to the Commission Project Officer for concurrence is necessary for budget revision approval. 13.|Per agreement between the Commission and State of Alaska,a"private enterprise policy” shall be adopted which appropriately considers but is not limited to the following provisions:a)All entities in a community providing fuel sales (for-profit and non-profit) Award Conditions,Amendment No.5 to Project No.0001-DC1999-I1 Page 6 Alaska Energy Authority August 2001 14. must be consulted about a consolidated fuel facility concept and provide written support of the project;b)establishment of a percentage-based formula contribution to be paid by private fuel sale entities for inclusion in the consolidated facility;and c)that the State's role is to assist all entities in the community,whenever possible,and to insure that private enterprise is not negatively impacted. Based upon proposed Federal funding for this project,project level environmental 15. reviews in accordance with the National Environmental Policy Act (NEPA)and the National Historic Preservation Act (NHPA)are required.The Authority shall address all potential environmental concerns (specific and cumulative effects)associated with the projects,identified in this Agreement,in consultation with applicable Federal,State,and local authorities.If the scope of work is changed in the future,then the Authority will revisit the project level environmental reviews to determine if potential environmental concerms must be further addressed.In the interest of streamlining the project level environmental reviews and avoid duplication of effort,any other Federal environmental review process carried out by the Authority on projects,identified in this Agreement, shall meet the intent of this paragraph. The Authority has agreed,in concert with the Denali Commission,to utilize an agreed- 16. upon amount of Denali Commission funds for the expansion of the Authority's Circuit Rider Program.This program provides for periodic visits to communities by staff or contractors to:a)inspect utility power plants and bulk fuel facilities to ensure reliable and efficient performance of those systems and b)assess conditions of these facilities for data collection. In the interest of establishing and maintaining an aggressive construction program the following Commission policy shall be employed by AEA.First,AEA shall develop a statewide comprehensive priority list for bulk fuel,rural power upgrade and alternative energy projects.(Note:the Alaska Industrial Development and Export Authority (AIDEA),the parent organization for AEA,through separate Agreement with the Commission for completion of a statewide energy plan has agreed to provide the three separateproject lists by December 1,2000.) design and-consiruction.The second step iis for the Commission,working fifrom the top of the priority list,to provide funding for completion of initial project designs,as needed. Any issues requiring resolution prior to full design and construction will be identified and resolved during this phase.If project issues cannot be resolved in a reasonable time frame,the Commission expects AEA to move down the priority list(s)to projects that are ready to proceed to full design and construction.It is expected that the Commission and AEAProject-Officers will meet quarterly to review the progress of projects and collaboratively determine if reasonable progress is being made and what steps should be taken,ifany,to-dealwithnew-dexelopments-taken next for those projects requiring further attention. Award Conditions,Amendment No.5 to Project No.0001-DC1999-I1 Page 7 Alaska Energy Authority August 2001 17. wnership,construction costs,and operation and maintenance capabilities may require considerable time to resolve.However,these issues must be resolved in a manner that is both satisfactory to the community and is cost effective.Although AEA has a key responsibility to facilitate agreement,the community bears the ultimate responsibility for resolving these issues.As a matter of policy,the Commission wants as much construction to occur during the limited Alaska construction season,yet allow appropriate time for the community to actively participate in the development of the project.Consequently,AEA in consultation with the Commission must decide which projects are readyto proceed well in advance of the construction season,and which are not.Ifa project is determined to be not ready to proceed to construction,AEA shall reallocate Commission funds toprojects that are ready for final design and construction.If this occurs,the Commission and AEA shall work together in an effort to assign future funding to the initial project after consensus on design and other project characteristics have been reached. Photographic documentation of project progress shall be provided with the quarterly reports.For full-fledged,active construction projects,photo documentation shall include a minimum of five,dated photos per quarter of current project status,such that a complete record of the construction is maintained over time,from "before,”showing the situation before the start of construction,to "during”showing work proceeding on the project,and "after”to show the finished project.For minor repair and O&M projects,pictures should be provided of before and after to the extent possible.Photos may be provided as photo quality,3x5 prints with negative for each picture,and/or print quality electronic photos (digital Images). Mike Harper From:Sara Fisher-Goad Sent:Friday,August 31,2001 11:04 AM To:Karl Reiche;Mike Harper;Chris Mello;Amy McCollum;Bruce Tiedeman;Linda MacMillanSubject:RE:Denali Commission grant amendments We have several issues that will need to be addressed.|don't think these grant amendments are ready for signature. Sara ----Original Message-----From:Kathy Prentki [mailto:KPrentki@denali.gov]Sent:Friday,August 31,2001 10:35 AMTo:Mike Harper;Sara Fisher-Goad Cc:Chris Mello;Amy McCollum;Karl Reiche;Bruce Tiedeman (E-mail);Charles Y.Walls;Michelle O'LearySubject:RE:Denali Commission grant amendmentsImportance:High Mike,Sara and everyone:Sorry to be so long in getting back with this.Enclosed are drafts of the two amendments. For the old 99/2000 award,there is no change to funding,only to theawardconditions.Sara,|used much of your wording from paragraph 8 toaddressyouraccountingconcerns.To make as few changes as possible,|did not delete the requirements listed in the award conditions you saidaresuperfluousbecausetheyarealreadyidentifiedincirculars.The change you suggest in identifying only "match"money,as opposed to allothercontributions,would be a nightmare for us to track and evaluate over here,so we did not incorporate that.Ultimately all project fundshavetobeidentified,whether they are counted as formal "match”or not. For the 2001 funding,we have added the $3,820,000 TAPL funds that werenotavailableinApril.We have also added $594,695.50 in additional TAPL funding for overruns on Kotlik and Allakaket.This is less thanyourequested,but reflects all the excess TAPL funds we have available. Changes in the award conditions are summarized in paragraph 1 of eachamendmentandareshowninbold,so you can easily identify them. Please review these as quickly as possible so we can obligate the moneywithasignedaward. Thank you, Kathy Prentki -----Original Message-----From:Sara Fisher-Goad [mailto:SFisherGoad@aidea.org]Sent:Tuesday,August 14,2001 2:36 PMTo:Kathy Prentki Ce:Chris Mello;Amy McCollum;Mike Harper;Karl ReicheSubject:Denali Commission grant amendments Kathy -Attached are the proposed amendments to the award conditions for the grants.Most of the changes were discussed on May 11th.The changesaccomplishthefollowing: 1.Address the technical changes to the grants to take care of AEA's accounting concerns regarding reimbursements rather than advances. 2.Identifies actual match requirement instead of "other contributions." 1 * AND EXPORT AUTHORITY =>ALASKA/QE ENERGY AUTHORITY ***eo r ,"ALASKA INDUSTRIAL DEVELOPMENT ** 813 WEST NORTHERN LIGHTS BLVD.ANCHORAGE,ALASKA 99503 907 /269-3000 FACSIMILE TRANSMITTAL To:Kathy Prentki Company:Denali Commission Fax #:271-1415 From:Jodi Peterson Tel.#269-4636 Date:9/17/01 Number ofpages including cover page: Transmittal Contents: (3) FAX 907 /269-3044 The Denali Commission and AEA had two firsts:executed a business plan in Kongiganek demonstrating sustainability and conducting a resident welding training program in Kotlik. The Denali Commission and Alaska Energy Authority (AEA)worked together to triple AEA's construction capacity by retaining private sector construction managers. INBOX:DC grant am 2 to Project No.0026-DC-2001-18 https://24.237.3.34/horde/imp/message.php3?index=120&array_index=0 ,rysyvol INBOX:1 of 120 Delete |Reply |Reply to all |Forward |Bounce |Resume |Save as Back to INBOX <P> Date Sun,9 Sep 2001 15:09:36 -0800 , From Sara Fisher-Goad <SFisherGoad@aidea.org> To Mike Harper <MHarper@aidea.org>,Linda MacMillan <LMacMillan@aidea.org>,Chris Mello <CMello@aidea.org> Subject DC grant am 2 to Project No.0026-DC-2001-I8 .multipart/mixed 63.89 KB application/msword 60.90 KB & iii Message Source Here is a summary of the differences between what I submitted back as our suggested changes and what Kathy sent to us last week.I did not get a change to call Kathy before 5 on Friday regarding the changes to the first grant.I concentrated on the second grant since her draft and mine aren't too different.With that said here are my concerns with her draft. 1.As we discussed,the match requirement is a concern.We will need to meet with her regarding this problem.If they don't want to designate a match requirement that does not include other federal funds, we need some other language that addresses our compliance requirements with federal regulations. 2.6B monthly project checking account summaries.She included this paragraph back in her version of the grant.With our Mikunda cleanup -checking accounts do not provide comprehensive community project expenditures.AKSAS provides most expenditure information now. We provide a very comprehensive quarterly progress report.I would not agree to providing any monthly information,especially when that would be considered an indirect cost,which they do not want to pay for. 3.6D Labor report.We can provide force account information,and CM information.ANY person working on a project is too broad.FYI -we need to have the CM's provide us a comprehensive report twice a year for their labor costs.I was able to gather most of the information from their invoices for the 7/31/01 report,but as we progress,we need them to report that information to us in a comprehensive manner.TI will write something up about this later. 4.section 7,I do not know the reason for the removal of the "no later than 90 days"requirement.I believe this is standard practice and a federal requirement for all federal grants. 5.section 8,what are admin.costs?Indirect costs are not allowed,but reimbursement of admin costs need to be reported ona separate 269 report.I believe indirect and admin are one in the same. 6.The photo requirements -Chris needs to determine if,as written,this is possible. I think most things can be hashed out at a meeting with them and we can agree to language at the table.Linda and I should be there for finance. Ranardina tha firect arant -T will find ant if cha raalliw maant that 1 of2 9/10/01 12:05 AM INBOX:DC grant am 2 to Project No.0026-DC-2001-18 https://24.237.3.34/horde/imp/message.php3?index=120&array_index=0 AAG YUE dy LE bade Ys uid hoWette basa YUE 2b VEIL LEUY Ate LAIUe restrictive language.If so,we need to talk about it at the meeting. I will also see what her thoughts are on some of the things mentioned above. See attachment for comparison. Delete |Reply |Reply to all |Forward |Bounce |Resume |Save as Back to INBOX <P> 2 of2 9/16/01 12:05 AM” Mike Harper From:Sara Fisher-Goad Sent:Sunday,September 09,2001 3:10 PM To:Mike Harper;Linda MacMillan;Chris MelloSubject:DC grant am 2 to Project No.0026-DC-2001-18 fe Award Conditions -2001 grant-...Here is a summary of the differences between what |submitted back as our suggested changes andwhatKathysenttouslastweek.|did not get a change to call Kathy before 5 on Friday regarding the changes to the firstgrant.|concentrated on the second grant since her draft and mine aren't too different.With that said here are myconcernswithherdraft. 1.As we discussed,the match requirement is a concern.We will need to meet with her regarding this problem.If theydon't want to designate a match requirement that does not include other federal funds,we need some other language thataddressesourcompliancerequirementswithfederalregulations. 2.6B monthly project checking account summaries.She included this paragraph back in her version of the grant.WithourMikundacleanup-checking accounts do not provide comprehensive community project expenditures.AKSASprovidesmostexpenditureinformationnow.We provide a very comprehensive quarterly progress report.|would notagreetoprovidinganymonthlyinformation,especially when that would be considered an indirect cost,which they do notwanttopayfor. 3.6D Labor report.We can provide force account information,and CM information.ANY person working on a project istoobroad.FYI -we need to have the CM's provide us a comprehensive report twice a year for their labor costs.|wasabletogathermostoftheinformationfromtheirinvoicesforthe7/31/01 report,but as we progress,we need them toreportthatinformationtousinacomprehensivemanner.|will write something up about this later. 4.section 7,|do not know the reason for the removal of the "no later than 90 days"requirement.|believe this isstandardpracticeandafederalrequirementforallfederalgrants. 5.section 8,what are admin.costs?Indirect costs are not allowed,but reimbursement of admin costs need to be reported on a separate 269 report.|believe indirect and admin are one in the same. 6.The photo requirements -Chris needs to determine if,as written,this is possible. |think most things can be hashed out at a meeting with them and we can agree to language at the table.Linda and |should be there for finance. Regarding the first grant -|will find out if she really meant that restrictive language.If so,we need to talk about it at themeeting.|will also see what her thoughts are on some of the things mentioned above. See attachment for comparison. Award Conditions to the Financial Assistance Award Amendment No.21 to Project No.0026-DC-2001-I8 FY2001 Bulk Fuel Consolidation Upgrades &Power Generation 2+ Alaska Energy Authority This Amendment No.l adds the second installment of TAPL fundine for this >'pfinancial assistance award and provides additional TAPL funding for project overruns at Kotlik and Allakaket;clarifies intent of Commission funding for this project in Paragraph 2,including the allowable use of TAPL funds,revises Paragraph 8 to delete the need for individual project checking accounts for funds received in advance of need and emphasizes that reimbursement is the preferred method of requesting payment;and incorporates Paragraph 16 to formalize the requirement for periodic project photographs to be submitted.Changes to previous wording are shown in "Bold”typeface. ca TATAThescopeofworkunderthisFinancialAssistanceAward4+}44+(the"Agreement )is to perform the planning and construct the projects listed on the attachedspreadsheet.ee URAEERRIZEIRIEAEEGEARAGREAE=on Gemntaokaaeacaa MENGEERazEneEneaEeaacmaaan tacinememmmaneeed meascaspieAnysurplusoffunds(on one or more of the projects funded under thisAgreement)may be used on other projects-identified under this Agreement that may be experiencing a project shortfall.The intent is not to set aside a specific sum of Commission funding to a particular community,but rather that the projects on the attached Spreadsheet are all completed successfully.Shifting of +-=fundine betweenprojectline+es He et eesiioms bye AEA is allowedprovidedthereiisnoincreaseinthetotaltotalfundingprovidedbytheCommission,and TAPL money may be used only for Bulk Fuel projects...The Commission Project Officer is to be copied on all revisions to the spreadsheet. Budget revisions to Commission funding shall be in accordance with 15CFR24.30 (c)(2).Written request by letter from the AEA Project Officer to the Commission Project Officer for concurrence is necessary for budget revisions where projects are added or deleted or that would result in the need for additional Commission funds. The Project Officers for+AEA are Mr.Chris Mello for purposes of project design and construction and Ms.Sara Fisher-Goad for purposes of financial management.The Project Officer for the Denali Commission is Ms.Kathleen Prentki. +++AEA shall submit written progress reports to the Commission Project Officer quarterly (January/March,April/June,etc.).The reports are due within 30 calendar days of the end of the quarter.Interim reports are required in the event of significant project events that may extend the project schedule and/or impact the project budget.Quarterly progress reports shall include a narrative summary of the project status and accomplishments to date,and address the following questions:is the project on schedule, is the project on budget,and what actions are planned to address any project problems. These progress reports shall be sent to: Award Conditions,Amendment 1 to Project No.0026-DC-2001-18 Page 2 Alaska Energy Authority August 2001 Denali Commission 510 "L”Street,Suite 410 Anchorage,AK 99501 The Commission reserves the right--+ -++++.+=-to direct-++s AEA to provide the progress reports in electronic format for posting on the Commission web page. A.Project financial status reports shall be submitted to the Commission Project Officer quarterly (included as part of the quarterly progress reports).For each project that includes funding from the Denali Commission,the quarterly financial status report shall +-+include the following: i.the total project budget ii.the project schedule with milestone dates for design and construction iil.the total amount of Denali Commission funds committed to the project iv.the total project expenditures as of the end of the most recent quarter v.the total expenditure of Denali Commission funds for the project as of the end of the most recent quarter Vi.the percentage of expenditures to the total budget;and vii.a project performance analysis on project line items,as defined by the AEA, showing budget costs compared to actual expenditures and obligations to date versus work performed to date (for each line item). Bo Monthly project checking account summaries (or at other intervals as requested bv the Commission Project Officer)for cach profect and revolvine fund account summary shall be provided to the Commission Project Officer. De tA Financial Status Report (Standard Form 269-WWWAYy hitchouse.2OV!OMB:erantsinden himl#forms)+beeaEEetmn:"shall be submitted to theCommissionProjectOfficerwithin90daysafterTtheend0f-ssst1.iS os Li ae ar Aaireersacee Ont,.st!}im os SC eee ere=v neneracrscrny Es ramos "owes vs Se ee Lae ore ore-_eseach anniversary of the mitial ae!Laward -C.date.anda tinal Financial Status Report shall be submitted within 90 davs after the end ol the Award Performance Period. D.A Labor Type,Residence,and Wage Report shall be submitted to the Commission Project Officer at a minimum of two times annually.At a minimum,these tworeportsmustbesubmittedonornearAugust1*and December 1*each year to correspond with the Alaska construction season,Ress Award Conditions,Amendment Lto Project No,0026-DC-2001-18 Page 3 Alaska Energy Authority Auvust 2001 information by construction proj ect for any person =employed=-+-++i on the construction of that project:position,n.place of primary residence,first check date,last check date,rate of pay per hour,payroll earnings from inception of project to date. Indirect costs (see OMB Circular A-87)are not allowuble under this Avreement. To receive payment,the Authority must submit a "Request for Advance or Reimbursement'. Standard Form-270.www.hitchousesev OMB 'vrants/indesx hunl#forms,to the Commission Project Officer,Cost reimbursable payments are approved under this award,and are the preferred method of payment.Reimbursements are based on actual expenditures only.Preferably,AEA shall submit a request for reimbursement on Standard Form-270,along with the quarterly report.However, request for reimbursementis not limited to a quarterly basis-=".AEA maybi irequestreimbursementonamorefrequentbasisifnecessary, ShanicneeansaanEnoaa woe PaDER UTA I EODUIET EL CVECUES SOURSUCUEEN EOE SNUTIESUPECUE OTS SINE c.Fo ene OTe as POSE E SE TEETTS =ptt -Although cost reimbursement iis the expectedmethodtorreceivepayment,advance payments may be requested on Standard-+=- NTT- Form-270 for no more than the amount anticipated to be needed for the following 90 davs. It is expected that the Authoritw will forecast by letter or spreadsheet format.Commission funds or working capital advances needed on a monthly (or as needed) basis fer each project.Phe Commission reserves the right ta consolidate project level pavMents Into one payment.This does not preclude more frequent Commission pavments,then monthly.given project specific needs.Commission funds receis ed as advance puvment shall be subject to interest provisions as set forth in 31 CFR205,12. The Commission Project Officer may review all project payments made by AFA from the funds advanced to determine if payments made are justified and supported by appropriate records,invoices and other documentation.The Commission reserves the right to Prohibitfurther payments to the S- -Authority.at any time,if discrepanciesinvolving--- ssthe advance account funds arise,until such time that thediscrepanciesare,resolved to the satisfaction of the Commission. 8.Pav requests for Authority adminisurauve costs shall be on a separate Standard Form -270 (quarterly)from project pay requests, a 9.To the maximum extent feasible,considering applicable laws,=AEA shall accomplish the work of this Agreement utilizing local labor and small,minority owned and disadvantaged businesses. Award Conditions,Amendment 1 to Project No.0026-DC-2001-18 Page 4 Alaska Enerev Authority August 2001 LQ.No portion of this award mav_be used for lobbving or propavanda purposes as prohibited 13. 15. bv IS LLS.C.Section 1913 or Section 6074)of Public Law 96-74, +AEA agrees to comply with the Commission's-+++private enterprise=--=-++4coonaneSeereeneeetpetotepolicy.a draft of whichis attached hereto and made aparthereof. Based upon proposed Federal funding,project level environmental reviews in accordance with the National Environmental Policy Act (NEPA)and the National Historic Preservation Act (NHPA)are required for each project undertaken with Denali Commission funds.In accordance with NEPA and NHPA legislation,+-AEA shall address all potential environmental concerns (specific and cumulative effects)associated with the projects,identified in this Agreement,in consultation with applicable Federal, State,and local authorities.If the scope of work is changed in the future,then=--AEA will revisit the project level environmental reviews to determine if potential environmental concerns must be further addressed.In the interest of streamlining the project level environmental reviews and to avoid duplication of effort,any other Federal Agency environmental review process carried out by=AEA on projects,identified in this Agreement,shall meet the intent of this paragraph. AEA shall evaluate the condition of bulk fuel storage facilities and electric utility systems in rural Alaska,and will developa list of these facilities ranked in the order of their physical condition.AEA will also acquire information on the operations and maintenance performance of rural electric utilities that may be incorporated in the project selection process. The electric utility systems and bulk fuel systems receiving the benefit of Commission"tH Vitifundingmustbesustainable.SERRE EE TOS Eaten sans Sececne orenemEnwerTEnsSn ESEAEY iS on !aa wt -7 ..yt.__ein areasereeeSS-=So caren,<=-rm arenespettet_As aprecondition of constrUctionfunding,aproject must -i voy ere,}tt.an 1aaateeeeaetetineet theattachedsustamabilitvcriteria, There are many issues -+esuclh as facility location,project ownership,construction costs, and compliance with sustainability criteria that require resolution prior to proceeding with full design and construction.If project issues cannot be resolved in a reasonable time frame,the Commission expects AEA to move down the priority list(s)to projects that are ready to proceed to full design and construction.It is expected that the Commission and AEA Project Officers will meet quarterly to review the progress of projects and collaboratively determine if reasonable progress is being made and what steps should be taken,if any,to deal with new developments encountered in the design and construction process. Award Conditions,Amendment 1 to Project No.0026-DC-2001-18 Page 5 Alaska Enerev Authority August 2001 16.Photographic documentation of project progress shall be provided with the quarterly reports.For full-fledged,active construction projects,photo documentation shall include a minimum of five,dated photos per quarter of current project status,such that a complete record of the construction is maintained over time,from "before,”showing the situation before the start of construction,to "during”showing work proceeding on the project,and "after”to show the finished project.For minor repair and O&M projects,pictures should be provided of before and after to the extent possible.Photos may be provided as photo quality,3x5 prints with negative for each picture,and/or print quality electronic photos (digital images). Mike Harper 7 4 From:Sara Fisher-Goad Sent:Tuesday,September 04,2001 7:16 AM To:Mike Harper;Kar!Reiche;Chris Mello Ce:Linda MacMillan Subject:RE:Non -Denali Commission Contribution for Capital Projects Probably the sooner the better.We have to discuss the amendments Kathy sent us.|think this should lead to a meetingwithDCstaff,Al Ewing,Kathy and their accounting person.The Hughes situation highlights several issues.1)this is what will happen if we don't have clear match requirements -|think a percentage match is the best solution2)they really don't understand the match requirement in 15CFR24.|think the point needs to be made,that CDBG fundsareotherfederalfunds,we cannot report them as a grant match -the Commission should not be able to tell us we can't fund the project because there are not other federal funds.Granted,we do have an RPSU match problem -lack of STATEorlocalfunds,but the commission should not be able to deny project specific funding based on lack of other federal dollars. 3)apparently we have worked under the false impression that match is based on the grant as a whole,not individualprojects.lf they are going attempt to deny funding for individual community projects,the match requirement needs to beequitableforeachsubrecipientgrant-and described in the grants. Lack of equitable match requirements has the potential of causing problems in several ways. |am in the process of updating RPSU info this morning so we know exactly what we have got to work with for state dollars. |did not reply to Kathy about the stuff she sent us.|assumed we should meet internally prior to responding specifically about the grant amendments. ----Original Message----- From:Mike HarperSent:Friday,August 31,2001 4:55 PM To:Karl Reiche;Sara Fisher-Goad;Chris MelloSubject:Non -Denali Commission Contribution for Capital Projects Sara:Could you please meet with Karl,Chris and myself and talk about this business of Denali CommissionrequirementonnonrequirementofaMatch(or more accurately a Non-Denali Commission Contribution).SeveralthingshappenedthisweeksothatnowIhavealittlebetterpictureoftheproblem,certainly not any solutions.OnFriday,Karl,Dick Emerman,and |attempted to respond to the Den.Comm.request for information about how muchFundingNotofDenaliComm.was being contributed to the RPSU'budget that we had sent over recently.One of ourrequestswasformorefundingforHughesRpsu.When we told Al at Den.Comm.that Hughes had lost the CDBGgrant(actually they did not follow through with required application),Al said DC would not fund the project.|saw your email back to Kathy Prentki that relates .If we can get together sometimes next week.Thanks Mike Harper 6-3) t From:Kathy Prentki [KPrentki@denali.gov] Sent:Friday,August 31,2001 10:35 AM To:Mike Harper;Sara Fisher-Goad Cc:Chris Mello;Amy McCollum;Karl Reiche;Bruce Tiedeman (E-mail);Charles Y.Walls;Michelle O'LearySubject:RE:Denali Commission grant amendments Importance:High £c aea amend]2001.xIs Award Amd 1 AEA award conditions Amd Award Conditions,Amd Award Amd 5 AEA 0026-DC-2001.1...1 AEA 002...5 faa-A... Sorry to be so long in getting back with this.Enclosed are drafts of the two amendments. For the old 99/2000 award,there is no change to funding,only to theawardconditions.Sara,|used much of your wording from paragraph 8 toaddressyouraccountingconcerns.To make as few changes as possible,|did not delete the requirements listed in the award conditions you saidaresuperfluousbecausetheyarealreadyidentifiedincirculars.Thechangeyousuggestinidentifyingonly"match"money,as opposed to allothercontributions,would be a nightmare for us to track and evaluateoverhere,so we did not incorporate that.Ultimately all project funds have to be identified,whether they are counted as formal "match"or not. For the 2001 funding,we have added the $3,820,000 TAPL funds that werenotavailableinApril.We have also added $594,695.50 in additionalTAPLfundingforoverrunsonKotlikandAllakaket.This is less thanyourequested,but reflects all the excess TAPL funds we have available. Changes in the award conditions are summarized in paragraph 1 of eachamendmentandareshowninbold,so you can easily identify them. Please review these as quickly as possible so we can obligate the money with a signed award. Thank you,Kathy Prentki -----Original Message-----From:Sara Fisher-Goad [mailto:SFisherGoad@aidea.org]Sent:Tuesday,August 14,2001 2:36 PM To:Kathy PrentkiCc:Chris Mello;Amy McCollum;Mike Harper;Karl ReicheSubject:Denali Commission grant amendments Kathy -Attached are the proposed amendments to the award conditions for the grants.Most of the changes were discussed on May 11th.The changesaccomplishthefollowing: 1.Address the technical changes to the grants to take care of AEA's accounting concerns regarding reimbursements rather than advances. 2.Identifies actual match requirement instead of "other contributions.” Other contributions included other federal funds that are not allowed as match for a federal grant.Other contributions included the estimated total project budgets.The match requirement is what will be reported on theannuallyrequiredform269. 3.Indirect costs are not allowed unless an approved cost allocation 1 0001-Dc1999-1...Mike,Sara and everyone: Other contributions included other federal funds that are not allowed as match for a federal grant.Other contributions included the estimated total project budgets.The match requirement is what will be reported on theannuallyrequiredform269. 3.Indirect costs are not allowed unless an approved cost allocation plan isavailable.DCED has an approved plan and we are investigating thepossibilityofusingit.In the meantime,we have removed the sectionpertainingtoindirectcostsandlobbyingexpensesnotbeingallowed. The rules regarding direct and indirect costs are covered under the federalregulationsandcircularsthatwearerequiredtofollow.Theprovisionsdonotneedtoberestatedinthegrant. 4.AEA's direct costs will be built into project budgets and will continue to be supported by positive timekeeping. Denali Comm.Questions (K.Prentki)On 9-20-01 Draft Presentation by Bob Poe e The reason REG has reduced the number of BFU projects from 23,as originally planned,to 21 is that more information has become available and some villages became more viable than others did e As to why the number of RPSU project funding has been reduced is that we have recommended6 villages be funded for design for a total of $300,000 ,while the recommendation back from Denali Commission appears to be $350,000 Mike Harper From:Amy McCollumSent:Monday,August 20,2001 4:03 PMTo:Mike HarperCc:Sara Fisher-Goad Subject:Denali Grant Award #2 -Amendment #1 Mike, |just talked to Michelle O'Leary,Denali Commission.The TAPL funds in the amount of $3,820,000 have been received bytheDenaliCommissionandareintendedtobeawardedtoAEAthroughanamendmenttogrant#2.The funds werebudgetedtobespentonthefollowingbulkfuelprojects: Kongiganek:$3,100,000MNikolai:$500,000 Repair &Replacement:$220,000 However,as you know there were some additional TAPL monies received that could be awarded to AEA through thisamendmentprocessaswell.The total amount of additional TAPL funding is $950,000.Per Chris,$750,000 has beenrequestedforKotlikandanadditional$200,000 will be requested for another project.These requests would be subject to DC approval.' Amy Mike Harper rom:Amy McCollument:Monday,August 20,2001 4:03 PM 10:Mike HarperCe:Sara Fisher-Goad Subject:Denali Grant Award #2 -Amendment #1 Mike, |just talked to Michelle O'Leary,Denali Commission.The TAPL funds in the amount of $3,820,000 have been received bytheDenaliCommissionandareintendedtobeawardedtoAEAthroughanamendmenttogrant#2.The funds werebudgetedtobespentonthefollowingbulkfuelprojects: Kongiganek:$3,100,000MNikolai:$500,000 Repair &Replacement:$220,000 However,as you know there were some additional TAPL monies received that could be awarded to AEA through thisamendmentprocessaswell.The total amount of additional TAPL funding is $950,000.Per Chris,$750,000 has beenrequestedforKotlikandanadditional$200,000 will be requested for another project.These requests would be subject to DC approval. Amy Lot |Mike Harper "rom:Kathy Prentki [KPrentki@denali.gov]Sent:Tuesday,August 14,2001 4:25 PM To:Chris Mello;Sara Fisher-Goad;Al Ewing;Michelle O'Leary Ce:Amy McCollum;Mike Harper;Karl ReicheSubject:RE:Denali Commission grant amendments Chris:|closed Word without saving what |was doing,so the amendmentdidn't get done before |left.ARGHH!Sara's language she sent thisafternoonandoursdidn't quite mesh anyway--what |had been working onwasjustcorrectingparagraph2and8ontheoriginalaward,to make itclearyouradvancesdon't have to be separated out.We will alsoclarifythatnoadditionalfundingwillbeaddedtothefirstaward.Any project overruns warranting additional Commission funding will be onalateraward.Also clarifying that TAPL funds can only be used on bulk fuel projects. Allakaket was not funded by DC to begin with,but you want us to fund your overrun??!(EPA and State funding)Al was tied up when |discovered that hiccup.|did talk to Mark S.and Wiley about theoverrunsonKotliktoo,and that does seem like a reasonable request (subject always to one last look) Sara--I don't recall discussion of the distinction you are making between match and other contribution.By labeling it as match,it sounds as if you are asking for the problem you discuss below.Also notsurewhereyouweregoingwiththecommentsonapprovedindirectcosts.We'll have to look at those more closely when |get back. Kathy ---Original Message-----From:Sara Fisher-Goad [mailto:SFisherGoad@aidea.org] Sent:Tuesday,August 14,2001 2:36 PMTo:Kathy PrentkiCc:Chris Mello;Amy McCollum;Mike Harper;Karl Reiche Subject:Denali Commission grant amendments Kathy -Attached are the proposed amendments to the award conditions for the grants.Most of the changes were discussed on May 11th.The changesaccomplishthefollowing: 1.Address the technical changes to the grants to take care of AEA's accounting concerns regarding reimbursements rather than advances. 2.Identifies actual match requirement instead of "other contributions.” Other contributions included other federal funds that are not allowed as match for a federal grant.Other contributions included the estimated total project budgets.The match requirement is what will be reported on theannuallyrequiredform269. 3.Indirect costs are not allowed unless an approved cost allocationplanisavailable.DCED has an approved plan and we are investigating the possibility of using it.In the meantime,we have removed the sectionpertainingtoindirectcostsandlobbyingexpensesnotbeingallowed. The rules regarding direct and indirect costs are covered under the federalregulationsandcircularsthatwearerequiredtofollow.Theprovisionsdonotneedtoberestatedinthegrant. 4.AEA's direct costs will be built into project budgets and will continue "to be supported by positive timekeeping. DiC.Greeh rarer Dive j' Mike Harper From:Kathy Prentki [KPrentki@denali.gov]Sent:Tuesday,August 14,2001 4:25 PMTo:Chris Mello;Sara Fisher-Goad;Al Ewing;Michelle O'LearyCe:Amy McCollum;Mike Harper;Karl ReicheSubject:RE:Denali Commission grant amendments Chris:|closed Word without saving what |was doing,so the amendment didn't get done before |left.ARGHH!Sara's language she sent thisafternoonandoursdidn't quite mesh anyway--what |had been working onwasjustcorrectingparagraph2and8ontheoriginalaward,to make it clear your advances don't have to be separated out.We will alsoclarifythatnoadditionalfundingwillbeaddedtothefirstaward. Any project overruns warranting additional Commission funding will be onalateraward.Also clarifying that TAPL funds can only be used on bulkfuelprojects. Allakaket was not funded by DC to begin with,but you want us to fundyouroverrun??!(EPA and State funding)Al was tied up when |discovered that hiccup.|did talk to Mark S.and Wiley about the overruns on Kotlik too,and that does seem like a reasonable request(subject always to one last look) Sara--|don't recall discussion of the distinction you are makingbetweenmatchandothercontribution.By labeling it as match,itsoundsasifyouareaskingfortheproblemyoudiscussbelow.Also not sure where you were going with the comments on approved indirect costs. We'll have to look at those more closely when |get back. Kathy -----Original Message----- From:Sara Fisher-Goad [mailto:SFisherGoad@aidea.org]Sent:Tuesday,August 14,2001 2:36 PM To:Kathy PrentkiCe:Chris Mello;Amy McCoilum;Mike Harper;Karl Reiche Subject:Denali Commission grant anendments Kathy -Attached are the proposed amendments to the award conditions for the grants.Most of the changes were discussed on May 11th.The changesaccomplishthefollowing: 1.Address the technical changes to the grants to take care of AEA'saccountingconcernsregardingreimbursementsratherthanadvances. 2.Identifies actual match requirement instead of "other contributions.”|Other contributions included other federal funds that are not allowed as match for a federal grant.Other contributions included the estimated total project budgets.The match requirement is what will be reported on the annually required form 269. 3.Indirect costs are not allowed unless an approved cost allocation plan is available.DCED has an approved plan and we are investigating thepossibilityofusingit.In the meantime,we have removed the section pertaining to indirect costs and lobbying expenses not being allowed.The rules regarding direct and indirect costs are covered under the federal regulations and circulars that we are required to follow.The provisions do not need to be restated in the grant. 4.AEA's direct costs will be built into project budgets and will continue wm to be supported by positive timekeeping. K PrenthKrA Aa»1 -o0UAwardConditionstothe Financial Assistance Award Project No. Federal FY2002 Bulk Fuel Consolidation Upgrades &Rural Power System Upgrades Alaska Energy Authority Project Scope Under this financial assistance award,the Alaska Energy Authority (AEA)will plan and design projects for bulk fuel storage upgrades (BFU)and rural power system upgrades (RPSU)in rural Alaskan communities.The award will provide funding to design approximately 21 BFU projects and 6 RPSU projects.The award will also provide additional funding to complete a RPSU project currently under construction. Coordination with Awards 0001-DC1999-I1 and 0026-DC2001-I8 It is desirable for funds to be used in order of award to the extent possible;however,unforeseen circumstances may cause unexpected delays for certain projects.Therefore expenditures relating to commission approved projects that meet the scope of all three awards may be reimbursed by any of the awards with the understanding that TAPL funds may only be used for BFU projects.; Award Revisions Revisions to this award shall be in accordance with 15CFR24.30 (c)(2).Written request from the AEA project officer to the Commission project officer for concurrence is required for revisions that result in the need for additional funding under the award. Project Officers Project officers for AEA are Mr.Chris Mello for design and construction,and Ms.Sara Fisher-Goad for financial management.Project officer for the Denali Commission is Ms.Kathleen Prentki. Reporting Quarterly Progress Report.AEA shall submit a written progress report to the Commission project officer quarterly (January/March,April/June,etc.).The report is due within 30 calendar days of the end of the quarter.The quarterly progress report shall be in the following format: Projects/Communities Type of Project Project Status and Denali Grant , TOTAL Accomplishments to Expenditures through EXPENDITURESDate(quarter) For community projects under construction,the report will also include an estimated total cost and an estimated completion date.The progress report will incorporate all community projects funded by Denali Commission financial assistance awards to AEA. The report shall be sent to: Denali Commission 510 "L”Street,Suite 410 Anchorage,AK 99501 The Commission reserves the right to direct AEA to provide the progress report in electronic format for posting on the Commission web page. Photographic documentation of active construction projects shall be provided with the quarterly progress reports.Photo documentation shall include a minimum of five dated photos per project.A complete Alaska Energy Authority August 2001 record of the construction project from "before,”showing the situation before the start of construction, to "during”showing work proceeding on the project,and "after”to show the finished project.For minor repair and O&M projects,pictures should be provided of before and after to the extent possible.Photos may be provided as photo quality,3x5 prints with negative for each picture,and/or print quality electronic photos (digital images).For projects under construction prior to this requirement,AEA will provide photos to the extent possible. Form 269.Financial Status Report -SF 269 www.whitehouse.gov/OMB/grants/index.html#forms)shall be submitted to the commission project officer within 90 days after the end of each anniversary of the initial award date.A final Financial Status Report shall be submitted within 90 days after the end of the award performance period.There is no required match,as defined in 15 CFR 24.24 (a)and (b),for this award to be reported on SF 269.The most recent quarterly progress report will accompany the SF 269. Construction Project Labor Report.A report of labor type,residence,and wages shall be submitted to the Commission project officer at a minimum of two times annually for projects under construction during the time period being reported on.At a minimum,the report must be submitted on or near August 1*and December 1*each year to correspond with the Alaska construction season.The report must be by construction project and include the following information for all people employed on the project:position,place of primary residence,first and last check date (or start and end date),rate of pay per hour,and payroll earnings from inception of project to date. 6.Cost Principles The cost principles of OMB Circular A-87 are applicable to this award.Indirect costs are allowed in accordance with OMB Circular A-87. 7.Audit Requirements AEA agrees to comply with the requirements of OMB Circular A-133,"Audits of States,Local Governments and Non-Profit Organizations.” 8.Method of Payment To receive payment,the AEA must submit a "Request for Advance or Reimbursement”,Standard Form- 270,www.whitehouse.gov/OMB/grants/index.html#forms,to the Commission project officer.Cost reimbursable payments are approved under this award,and are the preferred method of payment. Preferably,AEA shall submit a request for reimbursement for actual expenditures only on Standard Form-270,along with the quarterly progress report.However,request for reimbursement is not limited to a quarterly basis.AEA may request reimbursement on a more frequent basis if necessary. If an advance payment is requested,AEA will also submit a forecast of funds needed .The Commission reserves the right to consolidate community project level payments into one payment.This does not preclude Commission payments more frequent than monthly,given project specific needs.Commission funds received as advance payment shall be subject to interest provisions as set forth in 31CFR205.12. The Commission project officer may review all project payments made by AEA from the funds advanced to determine if payments made are justified and supported by appropriate records,invoices and other documentation.The Commission reserves the right to prohibit further payments to the AEA,at any time, if discrepancies involving advanced account funds arise,until such time that the discrepancies are resolved to the satisfaction of the Commission. 9.Local Labor and Small,Minority Owned and Disadvantaged Businesses To the maximum extent feasible,considering applicable laws,AEA shall accomplish the work of this award utilizing local labor and small,minority owned and disadvantaged businesses. Alaska Energy Authority August 2001 10. 11. 12. 13. Lobbying No portion of this award may be used for lobbying or propaganda purposes as prohibited by 18 U.S.C. Section 1913 or Section 607(a)of Public Law 96-74. Commission Private Enterprise Policy AEA agrees to comply with the Commission's draft private enterprise policy,dated December 15,2000. Environmental Reviews Project level environmental reviews in accordance with the National Environmental Policy Act (NEPA) and the National Historic Preservation Act (NHPA)are required for each project undertaken with Denali Commission funds.In accordance with NEPA and NHPA legislation,AEA shall address all potential environmental concerns (specific and cumulative effects)associated with the projects funded under this award in consultation with applicable Federal,State,and local authorities.If the scope of work is changed in the future,then AEA will revisit the project level environmental reviews to determine if potential environmental concerns must be further addressed.In the interest of streamlining the project level environmental reviews and to avoid duplication of effort,any other Federal agency environmental review process carried out by AEA on projects funded under this award shall meet the intent of this paragraph. Project Selection Assessment of Need-AEA shall evaluate the condition of bulk fuel storage facilities and electric utility systems in rural Alaska,and will developa list of these facilities ranked in the order of their physical condition.AEA will also acquire information on the operations and maintenance performance of rural electric utilities that may be incorporated in the project selection process. Assessment of Sustainability-The electric utility systems and bulk fuel storage facilities receiving the benefit of Commission funding must be sustainable.As a precondition of construction funding,a project must meet the sustainability criteria,dated April 20,2001.Community construction projects listed in Project No.0001-DC1999-I1,which were approved for construction by the Denali Commission prior to the adoption of the sustainability criteria,are exempt from the sustainability requirements. Assessment of Other Criteria-There are many issues such as facility location,project ownership, construction costs,and compliance with sustainability criteria that require resolution prior to proceeding with full design and construction.If project issues cannot be resolved in a reasonable time frame,the Commission expects AEA to move down the priority list(s)to projects that are ready to proceed to full design and construction.The Commission and AEA project officers will meet quarterly to review the progress of projects and collaboratively determine if reasonable progress is being made and what steps should be taken,if any,to deal with new developments encountered in the design and construction process.- Ay Project Number aN 0026-DC-2001-I8S-Amendment No.1 Denali Commission Accounting Code 95670000 FY01 Commission 6,332,846.00 AS!Funding Financial Assistance Award 95670000 FY01 TAPL Funding 4,414,695.50 DENALI COMMISSION 510 "L"Street,Suite 410 Anchorage,Alaska 99501 (907)271-1414 Total Commission Funding 10,747,541.50 Funds Available &Apportioned by OMB Cost Share Distribution Recipient Name &Address , State of Alaska Commission contributors PotalsAlaskaIndustrialDevelopmentandExportAuthority Alaska Energy Authority Bulk Fuel 4,414,695.50 0 4,414,695.50 813 W.Northern Lights RPSUAnchorage,AK 99503 1,400,000 1,218,500.00 2,618,500.00 Other 4,932,846.00 0 4,932,846.00 Phone (907)269-3000 Totals 10,747,541.50 |1,218,500.00 |11,966,041.50Fax(907)269-3044 ae a et Authority Project Title Award Performance Period 112 Stat 1854 Bulk Fuel Consolidation Upgrades &Power From:April 19,2001 Generation To:January 1,2007 This Financial Assistance Award approved by the Federal Co-Chair of the Denali Commission is issued in triplicate and constitutes an obligation of federal funding.By signing the three documents,the Recipient agrees to comply with the Award provisions indicated below and attached.Upon acceptance by the Recipient,two signed Award documents shall be returned to the Federal Co-Chair of the Denali Commission and the Recipient shall retain the third document.If not signed and returned without modification by the Recipient within 30 days of receipt,the Federal Co-Chair may unilaterally terminate this Award. (]EDA Standard Terms and Conditions Public Works and Implementations Construction Components,dated 3/99{X Special Award Conditions and Attachments [_]Line Item Budget (X]15 CFR 24,Uniform Admin Requirements for Grants/Cooperative Agreements to State and Local Governments (www.access.gpo.gov/nara/cftr/waisidx_99/15cfr24_99.htm)) (]OMB Circular A-87,Cost Principles for State and Local Governments and Indian Tribal Governments (www.whitehouse.gov/OMB/circulars/a087/a087-all.html)-X]OMB Circular A-133,Audits (www.whitehouse.gov/OMB/circulars/al33/al33.html) (_]15 CFR,Part 14,Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education,Hospitals,Other Nonprofit,and Commercial Organizations (www.access.gpo.gov/nara/cfr/waisidx_99/15cfrl4_99.html) [J OMB Circular A-122,Cost Principles for Nonprofit Organizations (www.whitehouse.gov/OMB/circulars/al122/a122.html)(-)OMB Circular A-21,Cost Principles for Educational Institutions (www.whitehouse.gov/OMB/circulars/a02 1/a021.html) {_]EDA Standard Terms and Conditions Capacity Building Programs {-]Department of Commerce Financial Assistance Standard Terms and Conditions,dated 10/98 Signature of Authorized Official -Denali Commission Typed Name and Title Date Jeffrey B.Staser,Federal Co-ChaiJelieyWyBlaser,seal o-Chair Signature of Authorized Official Typed Name and Title Date Robert Poe,Jr.,Executive Director Rev:01/01 Award Conditions to the Financial Assistance Award Amendment No.1 to Project No.0026-DC-2001-I8 FY2001 Bulk Fuel Consolidation Upgrades &Power Generation Alaska Energy Authority This Amendment No.1 adds the second installment of TAPL funding for thisfinancialassistanceawardandprovidesadditionalTAPLfurfundingforproject overruns at Kotlik and Allakaket;clarifiesintent of Commission funding for thisprojectinParagraph2,including the allowable use of TAPL funds,revises Paragraph 8 to delete the need for individual project checking accounts for funds received in advance of need and emphasizes that reimbursement is the preferred method of requesting payment;and incorporates Paragraph 16 to formalize the requirement for periodic project photographs to be submitted.Changes to previous wording are shown in "Bold”typeface. The scope of work under this Financial Assistance Award (the "Agreement”is to perform the planning and construct the projects listed on the attached spreadsheet.Any surplus of funds (on one or more of the projects funded under this Agreement)may be used on other projects identified under this Agreement that may be experiencing a project shortfall.The intent is not to set aside a specific sum of Commission funding to a particular community,but rather that the projects on the attached spreadsheet are all completed successfully,Shifting of funding between project line items by AEA is allowed provided there is no increase in the total funding provided by the Commission, and TAPL money may be used only for Bulk Fuel projects.-The Commission Project Officer is to be copied on all revisions to the spreadsheet. Budget revisions to Commission funding shall be in accordance with 15CFR24.30 (c)(2). Written request by letter from the AEA Project Officer to the Commission Project Officer for concurrence is necessary for budget revisions where projects are added or deleted or that would result in the need for additional Commission funds. The Project Officers for AEA are Mr.Chris Mello for purposes of project design and construction and Ms.Sara Fisher-Goad for purposes of financial management.The Project Officer for the Denali Commission is Ms.Kathleen Prentki. AEA shall submit written progress reports to the Commission Project Officer quarterly (January/March,April/June,etc.).The reports are due within 30 calendar days of the end of the quarter.Interim reports are required in the event of significant project events that may extend the project schedule and/or impact the project budget.Quarterly progress reports shall include a narrative summary of the project status and accomplishments to date,and address the following questions:is the project on schedule,is the project on budget,and what actions are planned to address any project problems.These progress reports shall be sent to: Denali Commission 510 "L”Street,Suite 410 Award Conditions,Amendment |to Project No.0026-DC-2001-I8 Page 2 Alaska Energy Authority August 2001 Anchorage,AK 99501 The Commission reserves the right to direct AEA to provide the progress reports in electronic format for posting on the Commission web page. 6.Four forms of project financial and labor reports are required. A.Project financial status reports shall be submitted to the Commission Project Officer quarterly (included as part of the quarterly progress reports).For each project that includes funding from the Denali Commission,the quarterly financial status report shall include the following: i.the total project budget ii.the project schedule with milestone dates for design and construction ili.the total amount of Denali Commission funds committed to the project iv.the total project expenditures as of the end of the most recent quarter Vv.the total expenditure of Denali Commission funds for the project as of the end of the most recent quarter Vi.the percentage of expenditures to the total budget;and vil.a project performance analysis on project line items,as defined by the AEA, showing budget costs compared to actual expenditures and obligations to date versus work performed to date (for each line item). Monthly project checking account summaries (or at other intervals as requested by the Commission Project Officer)for each project and revolving fund account summary shall be provided to the Commission Project Officer. A Financial Status Report (Standard Form 269 - www.whitehouse.gov/OMB/grants/index.html#forms)shall be submitted to the Commission Project Officer within 90 days after the end of each anniversary of the initial award date,and a final Financial Status Report shall be submitted within 90 days after the end of the Award Performance Period. A Labor Type,Residence,and Wage Report shall be submitted to the Commission Project Officer at a minimum of two times annually.At a minimum,these two reports must be submitted on or near August 1st and December 1st each year to correspond with the Alaska construction season.A Labor Type,Residence,and Wage Report must included the following information by construction project for any person employed on the construction of that project:position,place of primary residence,first check date,last check date,rate of pay per hour,payroll earnings from inception of project to date. 7.Indirect costs (see OMB Circular A-87)are not allowable under this Agreement. Award Conditions,Amendment |to Project No.0026-DC-2001-I8 Page 3 Alaska Energy Authority August 2001 9. 10. cel \11.ch! 12. yo ®y wy To receive payment,the Authority must submit a "Request for Advance or Reimbursement”,Standard Form-270, www.whitehouse.gov/OMB/grants/index.html#forms,to the Commission Project Officer. Cost reimbursable payments are approved under this award,and are the preferred method of payment.Reimbursements are based on actual expenditures only. Preferably,AEA shall submit a request for reimbursement on Standard Form-270, along with the quarterly report.However,request for reimbursement is not limited to a quarterly basis.AEA may request reimbursement on a more frequent basis if necessary.Although cost reimbursement is the expected method to receive payment, advance payments may be requested on Standard Form-270 for no more than theamountanticipatedtobeneededforthefollowing90days.It is expected that the Authority will forecast by letter or spreadsheet format,Commission funds or working capital advances needed on a monthly (or as needed)basis for each project.The Commission reserves the right to consolidate project level payments into one payment. This does not preclude more frequent Commission payments,then monthly,given project specific needs.Commission funds received as advance payment Shall be subject tointerestprovisionsassetforthin31CFR205.12.The Commission Project Officer may review all project payments made by AEA from the funds advanced to determine if payments made are justified and supported by appropriate records,invoices andotherdocumentation.[he Commission reserves the right to prohibit further payments to the Authority,at any time,if discrepancies involving the adyance account funds arise, until such time that the discrepancies are resolved to the satisfaction of the Commission. Pay requests for Authority administrative costs shall be on a separate Standard Form -270 (quarterly)from project pay requests. To the maximum extent feasible,considering applicable laws,AEAshall accomplish theworkofthisAgreementutilizinglocallaborandsmall,minority owned and disadvantaged businesses. No portion of this award may be used for lobbying or propaganda purposes as prohibited by 18 U.S.C.Section 1913 or Section 607(a)of Public Law 96-74. AEA agrees to comply with the Commission's private enterprise policy,a draft of whichisattachedheretoandmadeaparthereof. Based upon proposed Federal funding,project level environmental reviews in accordance with the National Environmental Policy Act (NEPA)and the National Historic Preservation Act (NHPA)are required for each project undertaken with Denali Commission funds.In accordance with NEPA and NHPA legislation,AEA shall address all potential environmental concerns (specific and cumulative effects)associated with the projects,identified in this Agreement,in consultation with applicable Federal,State,and local authorities.If the scope of work is changed in the future,then AEA will revisit the Alaska Energy Authority Projects -Denali Commission FY2001 Funding--Amendment 1 Project Total Project |Total Project |Denali Funds |Denali Commission Funding Community Name Description/Type Costs Funding FY99-FY00 FY 2001 Other Funds less Costs AEA Personnel Services Administrative 280,000 280,000 $280,000.00 - Allakaket overruns Bulk Fuel $200,000.00 1,460,000 Energy Cost Reduction RFP 3,952,846 3,952,846 $3,952,846.00 - Energy Cost Reduction RFP Consultants 100,000 100,000 $100,000.00 - Business Plans for 40 Communities |Planning 600,000 600,000 $600,000.00 - Kotlik RPSU 1,855,000 1,855,000 705,000 |$600,000.00 §50,000 - Kotlik overruns Bulk Fuel 3,850,000 2,339,295 |$394,695.50 760,705 Kongiganak Bulk Fuel 3,800,000 3,800,000 $3,100,000.00 700,000 - Nikolai Bulk Fuel 1,200,000 1,200,000 $500,000.00 700,000 - Tuluksak RPSU 1,468,500 1,468,500 $800,000.00 668,500 - Repairs and Replacement 220,000 220,000 $220,000.00 - Total Funding 17,326,346 13,476,346 3,044,295 §$10,747,541.50 4,839,205 - aea amend 2001.xIs Financial Assistance Award Project Number 0001-DC1999-I1 -Amendment No.5 Denali Commission Accounting Code DENALI COMMISSION 95670000 |FY 1999 Commission $16,274,000510"L"Street,Suite 410 fundingseeONILI95670000|FY 2000 Commission $9,000,000 funding 95670000 |Transfer to project #0023-($540,162) DC-2001-I5 95670000 |FY 2000 TAPL funding $5,202,000 Total Commission Funding (1999 &2000)$29,935,838 Funds Available &Apportioned by OMB _. Cost Share Distribution Recipient Name &Address Denali AEA &other Totals State of Alaska Commission contributors Alaska Industrial Development and Export Authority Bulk Fuel $19,999,362 |$11,858,054 |$31,857,416 Alaska Energy Authority Power $8,677,000 |$3,200,547 |$11,877,547813W.Northern Lights generation Anchorage,AK 99503 Design,$1,259,476 $100,000 $1,359,476 AVTEC, Phone (907)269-3000 other Fax (907)269-3044 Totals $29,935,838 |$15,158,601 |$45,094,439 Authority 112 Stat 1854 Project Title Generation (FY 1999 &2000) Bulk Fuel Consolidation Upgrades and Power Award Performance Period From:June 3,1999 To:October 31,2005 this Award. X Special Award Conditions and Attachments X Line Item Budget This Financial Assistance Award approved by the Federal Co-Chair of the Denali Commission is issued in triplicate and constitutes an obligation of federal funding.By signing the three documents,the Recipient agrees to comply with the Award provisions indicated below and attached.Upon acceptance by the Recipient,two signed Award documents shall be returned to the Federal Co-Chair of the Denali Commission and the Recipient shall retain the third document.If not signed and returned without modification by the Recipient within 30 days of receipt,the Federal Co-Chair may unilaterally terminate [_]EDA Standard Terms and Conditions Public Works and Implementations Construction Components,dated 3/99 X 15 CFR 24,Uniform Admin Requirements for Grants/Cooperative Agreements to State and Local Governments (www.access.gpo.gov/nara/cfr/waisidx_99/15cfr24_99.html) X OMB Circular A-87,Cost Principles for State and Local Governments and Indian Tribal Governments (www.whitehouse.gov/OMB/circulars/a087/a087-all.html) X OMB Circular A-133,Audits of States,Local Governments and Indian Tribal Governments (www.whitehouse.gov/OMB/circulars/a133/a133html)(-]15 CFR,Part 14,Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education,Hospitals,Other Nonprofit,and Commercial Organizations (www.access.gpo.gov/nara/cfr/waisidx_99/15cfrl4_99.html) (J OMB Circular A-122,Cost Principles for Nonprofit Organizations (www.whitehouse.gov/OMB/circulars/al22/a122.html) (CJ OMB Circular A-21,Cost Principles for Educational Institutions (www.whitehouse.gov/OMB/circulars/a02 1/a021.html) [_]EDA Standard Terms and Conditions Capacity Building Programs [_]Department of Commerce Financial Assistance Standard Terms and Conditions,dated 10/98 Robert Poe,Jr.,Executive Director Signature of Authorized Official -Denali Commission Typed Name and Title Date Jeffrey Staser,Federal Co-Chair Signature of Authorized Official -AEA Typed Name and Title Date Award Conditions,Amendment 1 to Project No.0026-DC-2001-I8 Page 4 Alaska Energy Authority August 2001 13. 14. 15. 16. project level environmental reviews to determine if potential environmental concerns must be further addressed.In the interest of streamlining the project level environmental reviews and to avoid duplication of effort,any other Federal Agency environmental review process carried out by AEA on projects,identified in this Agreement,shall meet the intent of this paragraph. AEA shall evaluate the condition of bulk fuel storage facilities and electric utility systems in rural Alaska,and will developa list of these facilities ranked in the order of their physical condition.AEA will also acquire information on the operations and maintenance performance of rural electric utilities that may be incorporated in the project selection process. The electric utility systems and bulk fuel systems receiving the benefit of Commission funding must be sustainable.As a precondition of construction funding,a project must meet the attached sustainability criteria. There are many issues such as facility location,project ownership,construction costs,and compliance with sustainability criteria that require resolution prior to proceeding with full design and construction.If project issues cannot be resolved in a reasonable time frame, the Commission expects AEA to move down the priority list(s)to projects that are ready to proceed to full design and construction.It is expected that the Commission and AEA Project Officers will meet quarterly to review the progress of projects and collaboratively determine if reasonable progress is being made and what steps should be taken,if any,to deal with new developments encountered in the design and construction process. Photographic documentation of project progress shall be provided with the quarterly reports.For full-fledged,active construction projects,photo documentation shall include a minimum of five,dated photos per quarter of current project status,such that a complete record of the construction is maintained over time,from "before,”showing the situation before the start of construction,to "during”showing work proceeding on the project,and "after”to show the finished project.For minor repair and O&M projects,pictures should be provided of before and after to the extent possible.Photos may be provided as photo quality,3x5 prints with negative for each picture,and/or print quality electronic photos (digital images). Award Conditions to the Financial Assistance Award Amendment No.5 to Project No.0001-DC1999-I1 Bulk Fuel Consolidation Upgrades &Power Generation (1999 &2000) Alaska Energy Authority This Amendment No.5 clarifies the intent of Commission funding for this project in Paragraph 2,including the allowable use of TAPL funds;revises the Project Officers in Paragraph 3;revises Paragraph 8 to delete the need for individual project checking accounts for funds received in advance of need,and emphasizes that reimbursement is the preferred method of requesting payment;incorporates Paragraph 17 to formalize the requirement for periodic project photographs to be submitted.Changes to previous wording are shown in "Bold”typeface. The scope of work for this project includes completion of projects identified under Amendment No.2,as well as 7 individual new projects funded with FY2000 funds. Total Commission funding (FY99 and FY2000)for the Alaska Energy Authority (Authority)through this Agreement is $29,935,838;total funding (including from other sources)is $45,094,439.Commission funding is intended for use for the scope of work specified above only.Commission funding is intended for use in the three broad areas of a)bulk fuel construction,b)power generation,and c)other projects such as the circuit rider program and AVTEC generator purchase for operator training.Any surplus of funds (on one or more of the projects funded under this Agreement)may be used on other projects,identified under this Agreement that may be experiencing a project shortfall. The intent is not to set aside a specific sum of Commission funding to a particular community,but rather that the projects,identified under this Agreement,are all completed successfully.TAPL money may be used only for Bulk Fuel projects. Projects experiencing cost overruns which warrant additional funding will not be funded under this project.Any such additional funds will be provided only underProject0026-DC-2001-I8 or future financial assistance awards.Shifting of costs between line items of the scope of work may be allowed with prior written approval from the Commission Project Officer.In the event there is a balance of funding after the full scope of work is completed,then the Commission will determine how the excess funds will be allocated. The Project Officers for the Authority are Mr.Chris Mello for purposes of project design and construction and Ms.Sara Fisher-Goad for purposes of financial management.The Project Officer for the Denali Commission is Ms.Kathy Prentki. The Authority shall submit written progress reports to the Commission Project Officer quarterly (January/March,April/June,etc.).The reports are due within 30 calendar days of the end of the quarter.Interim reports are required in the event of significant project events that may extend the project schedule and/or impact the project budget.Quarterly progress reports shall include a narrative summary of the project status and accomplishments to date,and address the following questions:is the project on schedule, is the project on budget,and what actions are planned to address any project problems. These progress reports shall be sent to: Award Conditions,Amendment No.5 to Project No.0001-DC1999-I1 Page 2 Alaska Energy Authority August 2001 Denali Commission 510 "L”Street,Suite 410 Anchorage,AK 99501 The Commission reserves the right,at a future date,to direct the Authority to provide the progress reports in electronic format for posting on the Commission web page. 5.Three forms of project financial reports are required. A.Project financial status reports shall be submitted to the Commission Project Officer quarterly (included as part of the quarterly progress reports).Included in the quarterly financial status reports shall be a project performance analysis on budgeted project line items,as defined by the Authority,showing budget costs compared to actual expenditures and obligations to date versus work performed to date (for each line item). B.Monthly project checking account summaries (or at other intervals as requested by the Commission Project Officer -but not more frequently than monthly)for each community and revolving fund account summary shall be provided to the Commission Project Officer (see Paragraph No.7 below). C.A final Financial Status Report (Standard Form 269 - www.whitehouse.gov/OMB/grants/index.html#forms)shall be submitted to the Commission Project Officer within 90 days after the end of the Award Performance Period.If the Period is longer then one year,or if the Agreement is revised to extend the Award Performance Period beyond one year,the Authority must annually submit a completed Standard From 269 within 90 days after the end of each anniversary of the award date. 6.The cost principles of OMB Circular A-87 are applicable to this award.Since there are no indirect costs included in the assistance award budget,they are not allowable under this Agreement. 7.The Authority agrees to comply with the requirements of OMB Circular A-133,"Audits of States,Local Governments and Non-Profit Organizations.” 8.To receive payment,the Authority must submit a "Request for Advance or Reimbursement”,Standard Form-270,to the Commission Project Officer.Cost reimbursable payments are approved under this award,and are the preferred method of payment.Reimbursements are based on actual expenditures only. Preferably,AEA shall submit a request for reimbursement on Standard Form-270, along with the quarterly report.However,request for reimbursement is not limited to a quarterly basis.AEA may request reimbursement on a more frequent basis if necessary.Although cost reimbursement is the expected method to receive payment,advance payments may be requested on Standard Form-270 for no more Award Conditions,Amendment No.5 to Project No.0001-DC1999-I1 Page 3 Alaska Energy Authority August 2001 10. 11. 12. 13. 14. than the amount anticipated to be needed for the following 90 days.It is expected that the Authority will forecast by letter or spreadsheet format,Commission funds or working capital advances needed on a monthly (or as needed)basis for each project.The Commission reserves the right to consolidate project level payments into one payment. This does not preclude more frequent Commission payments,then monthly,given project specific needs.Commission funds received as advance payment Shall be subject tointerestprovisionsassetforthin31CFR205.12.The Commission Project Officer may review all project payments made by AEA from the funds advanced to determine if payments made are justified and supported by appropriate records,invoices andotherdocumentation.!he Commission reserves the right to prohibit further payments to the Authority,at any time,if discrepancies involving the gqyance account funds arise, until such time that the discrepancies are resolved to the satisfaction of the Commission. Pay requests for Authority administrative costs shall be on a separate Standard Form - 270 (quarterly)from project pay requests. To the maximum extent feasible,considering applicable laws,the Authority shall accomplish the work of this Agreement utilizing local labor and small,minority owned and disadvantaged businesses. No portion of this award may be used for lobbying or propaganda purposes as prohibited by 18 U.S.C.Section 1913 or Section 607(a)of Public Law 96-74. Attached to these Award Conditions are the following documents: a.Notes to Amendment No.3 which describe specific project changes b.Spreadsheet of projects sorted alphabetically,and c.Spreadsheet of projects sorted by project type Project budget revisions shall be in accordance with 15CFR24.30(c.iii.2).Written request by letter from the Authority Project Officer to the Commission Project Officer for concurrence is necessary for budget revision approval. Per agreement between the Commission and State of Alaska,a "private enterprise policy” shall be adopted which appropriately considers but is not limited to the following provisions:a)All entities in a community providing fuel sales (for-profit and non-profit) must be consulted about a consolidated fuel facility concept and provide written support of the project;b)establishment of a percentage-based formula contribution to be paid by private fuel sale entities for inclusion in the consolidated facility;and c)that the State's role is to assist all entities in the community,whenever possible,and to insure that private enterprise is not negatively impacted. Based upon proposed Federal funding for this project,project level environmental reviews in accordance with the National Environmental Policy Act (NEPA)and the National Historic Preservation Act (NHPA)are required.The Authority shall address all potential environmental concerns (specific and cumulative effects)associated with the Award Conditions,Amendment No.5 to Project No.0001-DC1999-I1 Page 4 Alaska Energy Authority August 2001 15. 16. projects,identified in this Agreement,in consultation with applicable Federal,State,and local authorities.If the scope of work is changed in the future,then the Authority will revisit the project level environmental reviews to determine if potential environmental concerns must be further addressed.In the interest of streamlining the project level environmental reviews and avoid duplication of effort,any other Federal environmental review process carried out by the Authority on projects,identified in this Agreement, shall meet the intent of this paragraph. The Authority has agreed,in concert with the Denali Commission,to utilize an agreed- upon amount of Denali Commission funds for the expansion of the Authority's Circuit Rider Program.This program provides for periodic visits to communities by staff or contractors to:a)inspect utility power plants and bulk fuel facilities to ensure reliable and efficient performance of those systems and b)assess conditions of these facilities for data collection. In the interest of establishing and maintaining an aggressive construction program the following Commission policy shall be employed by AEA.First,AEA shall develop a statewide comprehensive priority list for bulk fuel,rural power upgrade and alternative energy projects.(Note:the Alaska Industrial Development and Export Authority (AIDEA),the parent organization for AEA,through separate Agreement with the Commission for completion of a statewide energy plan has agreed to provide the three separate project lists by December 1,2000.) The second step is for the Commission,working from the top of the priority list,to provide funding for completion of initial project designs,as needed.Any issues requiring resolution prior to full design and construction will be identified and resolved during this phase.If project issues cannot be resolved in a reasonable time frame,the Commission expects AEA to move down the priority list(s)to projects that are ready to proceed to full design and construction.It is expected that the Commission and AEA will meet quarterly to review the progress of projects and collaboratively determine if reasonable progress is being made and what steps should be taken next for those projects requiring further attention. Many issues like facility location,project ownership,construction costs,and operation and maintenance capabilities may require considerable time to resolve.However,these issues must be resolved in a manner that is both satisfactory to the community and is cost effective.Although AEA has a key responsibility to facilitate agreement,the community bears the ultimate responsibility for resolving these issues.As a matter of policy,the Commission wants as much construction to occur during the limited Alaska construction season,yet allow appropriate time for the community to actively participate in the development of the project.Consequently,AEA in consultation with the Commission must decide which projects are ready to proceed well in advance of the construction season,and which are not.Ifa project is determined to be not ready to proceed to construction,AEA shall reallocate Commission funds to projects that are ready for final design and construction.If this occurs,the Commission and AEA shall work together in Award Conditions,Amendment No.5 to Project No.0001-DC1999-I1 Page 5 Alaska Energy Authority August 2001 17. an effort to assign future funding to the initial project after consensus on design and other project characteristics have been reached. Photographic documentation of project progress shall be provided with the quarterly reports.For full-fledged,active construction projects,photo documentation shall include a minimum of five,dated photos per quarter of current project status,such that a complete record of the construction is maintained over time,from "before,”showing the situation before the start of construction,to "during”showing work proceeding on the project,and "after”to show the finished project.For minor repair and O&M projects,pictures should be provided of before and after to the extent possible.Photos may be provided as photo quality,3x5 prints with negative for each picture,and/or print quality electronic photos (digital images). Page 1 of 1 Mike Harper From:Karl Reiche Sent:Thursday,August 01,2002 2:39 PM To:'Kathy Prentki';Al Ewing Cc:Chris Mello;Mike Harper;Sara Fisher-Goad Subject:RE:next round of funds (August 2002 bulk fuel upgrades) Request a few minor changes:would like to add one more CDR for a total of 12.The 12 communities proposed are Hoonah,Port Protection,Point Baker,St.Paul,Atka,Diomede,Clark's Point,False Pass, Akutan,Fort Yukon,Nondalton,and Pedro Bay.We dropped Port Alsworth from the previous list,and added Nondalton and Pedro Bay. According to our consultants,the school's tank farm in Port Alsworth was recently upgraded.The other tanks present belong to private lodges. One additional CDR would change the numbers as shown below: From:Kathy Prentki [mailto:KPrentki@denali.gov] Sent:Monday,July 29,2002 10:27 AM To:mharper@aidea.org;Al Ewing Ce:Chris Mello;Karl Reiche;Michelle O'Leary Subject:next round of funds I'm proposing to issue another amendment for bulk fuel projects this week,per your June funding request. Nikolai Phase 3 Construction $734,950[Karl Reiche]$734,950 Golovin Phase 2 Final Design 80,000[Karl Reiche]$80,000 Eleven Phase 1 CDR's &BOP 770,000[Karl Reiche]$840,000 4%AEA direct Administration 63,398[Karl Reiche]$66,198 TOTAL $1,648,348[Karl Reiche]$1,721,148 Does that cover all the projects that are ready to advance?It looked as if White Mountain and Igiugig needed to have submittals to us before they can be advanced further. Kathy 8/8/2002 FROM :BPXA CORDOVA PHONE NO.:9074244365 May.17 2801 83:@5PM P2ereeeeee)ee ee re ee ee es MAY-15-01 TUE 10:32 AN P,Ud ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY <>A@mxENERGY AUTHORITY 813 WEST NORTHERN LIGHTS BLVD.©ANCHORAGE,ALASKA 99503 ©907/269-3000 ©FAX 907/269-3044TOLLFREE(ALASKA ONLY)888 /300-8534 May 15,2001 Ms.Kathleen Prentki,Project Officer Denalf Commission 510 L Street,Suits 410 Anchorage,AK.99501 Re:0001-10C1999-]}-Amendment No.4 and 0026-DC-2001-I8 Dear Ms.Prentkh: i would like to thank you and Charlie for meeting with Amy McColtum and me on Friday.The following is a susmary of what we discussed and agreed to on Friday, 1.AEA will draft changes to the Financial Assistance Awards listed above,to clarify the difference between the Federal Form 269 reportable match and the other contributors.Currently,the other contributors include other federal dollars and also state dollars that are used as match for other federal prants,15 CFR24 does not allow those funds to be counted towards our match. 2.In an effort to eliminate the amount of waexpended Denali Commaission fund balances in Individual project accounts,AEA will not request any foture pay advances.AEA will request *funds on a reimbursement basis,In order for this to be accomplished,grant expenditures will be paid for directly from the state accounting system.According to 15 CFR.24,.21(d),the reimbursement method is the preferable method of expending federal grant funds.AEA will draft necessary changes to the Awards to reflect this change. As we discussed,it is important that AEA implement #2 immediately.Although there are some language changes required to clarify that AEA will request reimbursements,we do not helieve that accounting for and paying invoices directly from the state accounting system is inconsistent with the current wording of the grant award. We appreciate your taking the rime to discuss these grant award changes.Please indicate your concurrencewiththeproposedcourseofactionoutlinedabovebysigningandfaxingacopybacktomeassoonaspossible.If you have any questions regarding this letter please call me at 269-4623.Thanks egain for meeting with us. Sincerely,dua KBka-GeedSaraFisher-Goad,Project OfficerIagreewiththeproposedcourseof action as outlined above!Kel Kren AT S7 7 /o/Kathleed Prentki,Project Officer co:Charlie Walls,Project Officer,Denali Commission Al Ewing,Chief of Steff,Denali Commission Valorie Walker,Deputy Director »Finance HAALL\SFisherGoad\Denali Commission Projects\ictter to change eward.doc DENALI COMMISSION 510 'L'Street,Suite 410 Anchorage,Alaska 99501 (907)271-1414 Fax (907)271-1415 Toll Free (888)480-4321 www.denali.gov April 26,2001 David Germer,AIDEA Meera Kohler,AVEC Re:FY01 Funding David and Meera, To confirm our conversations,the Commission expects to receive the TAPL funds needed to fully fund your FY01 Awards in July.When the TAPL funds arrive,then your FY01 award will be amended to fund the approved bulk fuel projects. It should also be noted that of the $7 million allocated to AEA in January only $4.6 million is being applied to AEA projects.AEA transferred $2.4 million out of the Toksook Bay project to fund higher priority projects.The Toksook Bay project is being transferred to AVEC.The funds move with the projects.$2.4 million from the January AEA allocation will restore the Toksook Bay project funding. The Toksook Bay project-funding plan included $210,338 of matching state funds.AVEC has agreed to provide that match with AVEC funds in combination with in kind contributions. I have provided you with draft documents for review.I expect to have final documents to you shortly for execution. Sincerely, Charles Y.Walls Project Manager -Energy Ce:Al Ewing Project Number 0026-DC-2001-18 Denali Commission Accounting Code 9567000 FYOI!Commission Funding $6.332.846 Financial Assistance Award DENALI COMMISSION 7.510 "L"Street,Suite 410 s . Anchorage,Alaska 99501 Total Commission Funding LO 96332846 (907)271-1414 ;Funds Available &Apportioned by OMB R N &Add Cost Share Distribution ecipient Name ress - State of Alaska Commiscion contributors foulsAlaskaIndustrialDevelopmentandExportAuthority Alaska Energy Authority Bulk Fuel .0 0 0 813 W.Northern Lights RPSUAnchorage,AK 99503 1,400,000 1,218,500 2,618,500 Other 4,932,846 0 4,932,846 Phone (907)269-3000 Totals 6,332,846 1,218,500 |7,551,346Fax(907)269-3044 Authority Project Title Award Performance Period 112 Stat 1854 Bulk Fuel Consolidation Upgrades &Power From:April 19,2001 Generation To:January 1.2007 This Financial Assistance Award approved by the Federal Co-Chair of the Denali Commission is issued in triplicate and constitutes an obligation of federal funding.By signing the three documents,the Recipient agrees to comply with the Award provisions indicated below and attached.Upon acceptance by the Recipient,two signed Award documents shall be returned to the Federal Co-Chair of the Denali Commission and the Recipient shall retain the third document.If not signed and returned without modification by the Recipient within 30 days of receipt,the Federal Co-Chair may unilaterally terminate this Award. []EDA Standard Terms and Conditions Public Works and Implementations Construction Components,dated 3/99X]Special Award Conditions and Attachments [J Line Item Budget &]15 CFR 24,Uniform Admin Requirements for Grants/Cooperative Agreements to State and Local Governments (www.access.gpo.gov/nara/cfr/waisidx 99/15cfr24_99.html) {J OMB Circular A-87,Cost Principles for State and Local Governments and Indian Tribal Governments (www.whitehouse.gov/OMB/circulars/a087/a087-all.html) &]OMB Circular A-133,Audits of States,Local Governments and Indian Tribal Governments (www.whitehouse.gov/OMB/circulars/a133/a133.html) (J 15 CFR,Part 14,Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education,Hospitals,Other Nonprofit,and Commercial Organizations (www.access.gpo.gov/nara/cfr/waisidx_99/15cfri4_99 html)[]OMB Circular A-122,Cost Principles for Nonprofit Organizations (www.whitehouse.gov/OMB/circulars/al22/a122.html(-]OMB Circular A-21,Cost Principles for Educational Institutions www.whitehouse.gov/OMB/circulars/a02 t/a02 L.html (J EDA Standard Terms and Conditions Capacity Building Programs [|Department of Commerce Financial Assistance Standard Terms and Conditions.dated 10/98 Signature of Authoyigéd cial -Denali Commission Typed Name and Title Date /Jeffrey B.Staser,Federal Co-Chair YVAZ G/O/7 eit OT Typed Name and Title Date .Robert Poe,Jr.,Executive Director Ss ]”JoiDEG Rev:01/01 Alaska Energy Authority Projects -Denali Commission FY2001 Funding Project Total Project |Total Project |Denali Funds |Denali Commission Funding Community Name Description/Type Costs Funding FY99-FY00 FY2001 Other Funds less Costs AEA Personal Services Administrative 280,000 280,000 280,000 : Energy Cost Reduction RFP 3,952,846 3,952,846 3,952,846 : Energy Cost Reduction REP Consultants 100,000 400,000 100,000 : Business Plans for 40 Communities Planning 600,000 600,000 600,000 Kotlik RPSU 1,855,000 1,855,000 705,000 600,000 550,000 : Tuluksak RPSU 1,468,500 1,468,500 800,000 668,500 - Total Funding 8,256,346 8,256,346 705,000 6,332,846 1,218,500 : AEA projects list 0026-DC-2001-18.xIs Award Conditions to the Financial Assistance Award Project No.0026-DC-2001-I8 FY2001 Bulk Fuel Consolidation Upgrades &Power Generation Alaska Energy Authority This award is made subsequent to an allocation of FY2001 funds by the Commission at its April 19,2001 meeting for bulk fuel and power system upgrade projects. The scope of work under this Financial Assistance Award (the "Agreement”)is to perform the planning and construct the projects listed on the attached spreadsheet.Any surplus of funds (on one or more of the projects funded under this Agreement)may be used on other projects identified under this Agreement that may be experiencing a project shortfall.The intent is not to set aside a specific sum of Commission funding to a particular community,but rather that the projects on the attached spreadsheet are all completed successfully.Shifting of funding between project line items by AEA is allowed provided there is no increase in the total funding provided by the Commission. The Commission Project Officer is to be copied on all revisions to the spreadsheet. Budget revisions to Commission funding shall be in accordance with 1SCFR24.30 (c)(2). Written request by letter from the AEA Project Officer to the Commission Project Officer for concurrence is necessary for budget revisions where projects are added or deleted or that would result in the need for additional Commission funds. The Project Officers for AEA are Mr.Chris Mello for purposes of project design and construction and Ms.Sara Fisher-Goad for purposes of financial management.The Project Officer for the Denali Commission is Ms.Kathleen Prentki. AEA shall submit written progress reports to the Commission Project Officer quarterly (January/March,April/June,etc.).The reports are due within 30 calendar days of the end of the quarter.Interim reports are required in the event of significant project events that may extend the project schedule and/or impact the project budget.Quarterly progress reports shall include a narrative summary of the project status and accomplishments to date,and address the following questions:is the project on schedule,is the project on budget,and what actions are planned to address any project problems.These progress reports shail be sent to: Denali Commission 510 "L”Street,Suite 410 Anchorage,AK 99501 The Commission reserves the right to direct AEA to provide the progress reports in electronic format for posting on the Commission web page. Four forms of project financial and labor reports are required. Award Conditions,Project No.0026-DC-2001-18 Page 2 Alaska Energy Authority April 26,2001 A.Project financial status reports shall be submitted to the Commission Project Officer quarterly (included as part of the quarterly progress reports).For each project that includes funding from the Denali Commission,the quarterly financial status report shall include the following: i.the total project budget ii.the project schedule with milestone dates for design and construction ili.the total amount of Denali Commission funds committed to the project iv.the total project expenditures as of the end of the most recent quarter v.the total expenditure of Denali Commission funds for the project as of the end of the most recent quarter Vi.the percentage of expenditures to the total budget;and vii.|a project performance analysis on project line items,as defined by the AEA, showing budget costs compared to actual expenditures and obligations to date versus work performed to date (for each line item). Monthly project checking account summaries (or at other intervals as requested by the Commission Project Officer)for each project and revolving fund account summary shall be provided to the Commission Project Officer. A Financial Status Report (Standard Form 269 - www.whitehouse.gov/OMB/grants/index.html#forms)shall be submitted to the Commission Project Officer within 90 days after the end of each anniversary of the initial award date,and a final Financial Status Report shall be submitted within 90 days after the end of the Award Performance Period. A Labor Type,Residence,and Wage Report shall be submitted to the Commission Project Officer at a minimum of two times annually.At a minimum,these two reports must be submitted on or near August 1"and December 1*each year to correspond with the Alaska construction season.A Labor Type,Residence,and Wage Report must included the following information by construction project for any person employed on the construction of that project:position,place of primary residence,first check date,last check date,rate of pay per hour,payroll earnings from inception of project to date. 7.Indirect costs (see OMB Circular A-87)are not allowable under this Agreement. 8.To receive payment,AEA must submit a "Request for Advance or Reimbursement”, Standard Form-270,www.whitehouse.gov/OMB/grants/index.html#forms,to the Commission Project Officer.On Standard Form-270,AEA will request that the Commission transfer the funds directly to a non-interest bearing checking account ("Account”)in the name of AEA at a bank insured by the Federal Deposit Insurance Corporation.AEA shall move Commission funds for this Agreement from the Account Award Conditions,Project No.0026-DC-2001-18 Page 3 Alaska Energy Authority April 26,2001 10. Il. 12. 13. into separate project checking accounts at a bank insured by the Federal Deposit Insurance Corporation.These project-level fund transfers shall occur when project funds are required to make payment upon AEA approved project invoices or when requesting project expenditure advances.It is expected that AEA will forecast by letter or spreadsheet format,Commission funds or project expenditure advances needed on a monthly (or as needed)basis for each project.The Commission reserves the right to consolidate project level payments into one payment.The Commission Project Officer may review all payments to determine if payments made from the separate project checking accounts are justified and supported by appropriate records,invoices and other documentation.If discrepancies involving the checking account funds arise,the Commission reserves the right to prohibit further payments to the ABA,until such time that the discrepancies are resolved to the satisfaction of the Commission.Pay requests for AEA administrative costs shall be submitted on a quarterly basis on a separate Standard Form -270. To the maximum extent feasible,considering applicable laws,AEA shall accomplish the work of this Agreement utilizing local labor and small,minority owned and disadvantaged businesses. No portion of this award may be used for lobbying or propaganda purposes as prohibited by 18 U.S.C.Section 1913 or Section 607(a)of Public Law 96-74. AEA agrees to comply with the Commission's private enterprise policy,a draft of which is attached hereto and made a part hereof. Based upon proposed Federal funding,project level environmental reviews in accordance with the National Environmental Policy Act (NEPA)and the National Historic Preservation Act (NHPA)are required for each project undertaken with Denali Commission funds.In accordance with NEPA and NHPA legislation,AEA shall address all potential environmental concerns (specific and cumulative effects)associated with the projects,identified in this Agreement,in consultation with applicable Federal,State,and local authorities.If the scope of work is changed in the future,then AEA will revisit the project level environmental reviews to determine if potential environmental concerns must be further addressed.In the interest of streamlining the project level environmental reviews and to avoid duplication of effort,any other Federal Agency environmental review process carried out by AEA on projects,identified in this Agreement,shall meet the intent of this paragraph. AEA shall evaluate the condition of bulk fuel storage facilities and electric utility systems in rural Alaska,and will develop a list of these facilities ranked in the order of their physical condition.AEA will also acquire information on the operations and maintenance performance of rural electric utilities that may be incorporated in the project selection process. Award Conditions,Project No.0026-DC-2001-18 Page 4 Alaska Energy Authority April 26,2001 14. 15. The electric utility systems and bulk fuel systems receiving the benefit of Commission funding must be sustainable.As a precondition of construction funding,a project must meet the attached sustainability criteria. There are many issues such as facility location,project ownership,construction costs,and compliance with sustainability criteria that require resolution prior to proceeding with full design and construction.If project issues cannot be resolved in a reasonable time frame, the Commission expects AEA to move down the priority list(s)to projects that are ready to proceed to full design and construction.It is expected that the Commission and AEA Project Officers will meet quarterly to review the progress of projects and collaboratively determine if reasonable progress is being made and what steps should be taken,if any,to deal with new developments encountered in the design and construction process. D-R-A-F-T as of January 12,2001 4. Draft Private Enterprise Policy Objective To establish policy guidelines for Denali Commission funds utilized for infrastructure projects where private enterprise is involved. General Policy Economic development is a part of the mission of the Denali Commission.Economic development is primarily a function of private enterprise,but a fundamental prerequisite for economic development is basic sustainable public infrastructure such as water and sewer,electric power,and bulk fuel storage facilities. Private enterprise plays a role in Alaska in providing part of that basic public infrastructure,and the Commission intends to be supportive of that role consistent with the objective of providing basic sustainable public infrastructure at an affordable price.Where a private entity provides basic public infrastructure on a monopolistic basis it is expected that the Regulatory Commission of Alaska (RCA)will ensure that rates for use of that infrastructure are fair and reasonable.In such instances where the RCA does not provide regulatory overview,the Commission,or Commission partners may,after consultation with all affected entities,take steps to encourage availability of basic infrastructure at fair and reasonable rates. General Provisions A.All proposals for new or upgraded infrastructure facilities to be funded with Denali Commission funds shall be evaluated on the basis of public benefits resulting from the project.A proposal for funding may be approved where the facility is or will be owned,operated,and/or maintained by private entities only if there 1s found to be a direct and substantial public benefit from the project. B.Funding decisions must take into account existing private enterprise in the community.Funding should not generally be used to create new or additional competition with existing private enterprise suppliers in the community. However in cases where an unregulated monopolistic condition exist in which current services are not available at fair and reasonable rates the Commission, after appropriate consultation,may consider funding projects that would contribute to more competitive rates. Provisions Specific to Bulk Fuel Storage A.The developer of any bulk fuel storage consolidation project funded in whole or in part by Denali Commission funds will consult with all retail fuel suppliers within a community in the course of developing the project's conceptual design to ensure that their interests are understood and,the extent feasible,dealt with in the course of conceptual design. D-R-A-F-T as of January 12,2001 B.The existing market share balance among retail]fuel suppliers within a community may be significantly altered as a result of a Denali Commission funding only if all of the affected retail fuel suppliers currently operating in the community agree to it or if such alteration is deemed necessary to facilitate competitive conditions in the community.For each type of fuel,the existing market share for a retail fuel supplier is defined as that supplier's existing in- service storage capacity as a percentage of the total gallons of existing in- service storage capacity for all retail fuel suppliers in the community. Where multiple retail fuel suppliers are involved in a project,comparable levels of investment in project costs (based on market share)will be sought from each participating retail fuel supplier in the community,whether public or private. Denali Commission funds may be used to upgrade or replace fuel storage facilities ownedby private sector retail fuel suppliers if there is determined to be significant public benefit.However,to ensure that long term project benefits flow through to the public,such new or improved fuel storage and dispensing facilities will be owned by a local government entity which may lease the facilities to the private sector fuel supplier at a nominal cost or contract with the private sector fuel supplier for facility operation.The term of such lease or contract will be for the life of the assets. Implementation Denali Commission partners will have full responsibility for implementing this policy. The Denali Commission will monitor to ensure satisfactory implementation.This policy may be modified or waived only by agreement of the Denali Commission Chief of Staff and the involved Denali Commission Partner if it is determine that modification or waiver is in the public interest. Rural Alaska Bulk Fuel Storage Criteria for Sustainability April 20,2001 Page 1 of2 Ownership of bulk fuel storage facilities funded by the Denali Commission (hereafter Commission)is typically divided among several entities.In most cases,one entity owns the underlying land,foundation,dike,liner,fill lines and several tanks.This entity is referred to herein as the Primary Owner.Other entities may own specific tanks and related equipment within the facility and may operate and maintain such tanks and equipment pursuant to a Commission approved lease agreement or occupancy agreement with the Primary Owner.These other entities are referred to herein as Secondary Owners.Compliance with the sustainability criteria set out below is the responsibility of the Primary Owner.If any of the Secondary Owners are out of compliance with these criteria,it is the responsibility of the Primary Owner to enforce the provisions of its lease agreements or occupancy agreements so that full compliance is achieved. Before construction funds will be advanced,the Primary Owner must have a business and work plan that is approved by the Denali Commission and that includes provision for adequate preventive and scheduled maintenance,an annual budget showing expenditure detail and adequate sources of revenue,a ten year capital replacement and expansion plan,and a ten year financial forecast.After the project has been placed in service, failure to comply with the sustainability criteria listed below will result in the transfer of project assets to an agreed upon back up operator to protect the assets and provide sustainable service. The Alaska Energy Authority will be responsible for helping Primary Owners prepare the business and work plan required in advance of project construction.After the project has been placed in service,the Denali Commission will be responsible for monitoring compliance with the sustainability criteria and for enforcement of its terms,including any future transfer of operational responsibility for project assets.Within the limits of available training funds,the Denali Commission will provide financial support for training and assistance needed to meet these sustainability criteria. A "back up operator'means an organization that,in the judgment of the Denali Commission,either meets these sustainability standards or is capable of meeting them, and that is willing to take responsibility for the operation and maintenance of the subject assets.For example,the Yukon Fuel Company and Crowley Marine Services are potential back-up operators that the Commission considers sustainable.Before construction funds will be advanced,the Primary Owner and a back up operator must agree in writing to cooperate on the transfer of project assets if required by the Denali Commission in the future due to non-compliance with these sustainability criteria.With the original back up operator's consent,other back up operators may be considered in the future.Such cooperation must include payment from the Primary Owner to cover the incremental costs incurred by the back up operator to operate and maintain the assets. The Denali Commission will assist in preparing the transfer cooperation agreements. Rural Alaska Bulk Fuel Storage Criteria for Sustainability April 20,2001 Page 2 of 2 The bulk fuel storage facility is being operated in substantial conformance with a Commission approved business and work plan under which adequate revenue will be available to cover all expenses and provide for renewal and replacement of plant to be financed by debt,equity,or a combination of debt and equity,plus a margin that is consistent with its long range financial needs.A depreciation schedule will be established and depreciation will be charged at a level sufficient to fund the projected costs of major repairs, renovations,renewals,and replacement of major plant components.Owners may anticipate that interest earnings from the Trans Alaska Pipeline Liability Fund (TAPL)will be available over the long term to help finance bulk fuel plant replacement and expansion. The bulk fuel storage facility is in compliance with the laws and regulations that govern its operation. Adequate preventive and scheduled maintenance is provided,facility inspections and leak tests are conducted as required by regulation,and the facility is kept in good condition and repair. The Primary Owner maintains separate accounts for the tank farm operation and arranges for annual financial audits of these accounts.The audits are conducted by qualified,independent auditors and consistently find that there are no significant financial irregularities. The Primary Owner is not in default with respect to any of its financial obligations,including debts,taxes,or other established liabilities. Fuel surcharges and other means of generating revenue for tank farm operations payable by each tank farm occupant are based exclusively on the cost of such operations and are proportional to each tank farm occupant's use of the facility. Adequate business insurance is in place that covers all significant risks.Self-insurance will be allowed for specific risks provided the Primary Owner can clearly demonstrate how adequate funds would be made available in a timely fashion to satisfy possible claims. A credible business and work plan for the facility is prepared or updated no less frequently than once every five years.The business and work plan includes provision for adequate preventive and scheduled maintenance,an annual budget showing expenditure detail and adequate sources of revenue,a ten year capital replacement and expansion plan,and a ten year financial forecast. Formal agreements are in place between the Primary Owner and any Secondary Owners that provide for the proper operating procedures and necessary maintenance to occur within the facility at all times,and that commit the Secondary Owners to cooperate as necessary with the Primary Owner in meeting the sustainability criteria set forth above. Rural Alaska Electric Utilities Criteria for Sustainability April 20,2001 Page |of2 The sustainability criteria listed below constitute targets that all rural electric utilities that are properly managed and operated should be able to meet.All electric utilities that benefit from projects funded by the Denali Commission must commit to the attainment of these targets within three years of the date a project is placed in service. It is recognized that rural electric utilities are now in varying degrees of compliance with these criteria and that varying amounts of time and training will be needed in order to attain full compliance.Within the limits of available training funds,the Denali Commission will provide financial support to electric utilities for training and assistance needed to meet these sustainability criteria. Before construction funds will be advanced,the utility must have a Commission approved business and work plan that includes provision for adequate preventive and scheduled maintenance,a ten year capital replacement and expansion plan,a ten year financial forecast,and a rate structure analysis.Incremental progress towards the attainment of the targets set forth in the utility's business and work plan is acceptable as long as such progress is significant and continuing.Failure to make significant progress will result in the transfer of the assets to an agreed upon back up operator to protect the assets and provide sustainable utility service. The Alaska Energy Authority will be responsible for helping utilities prepare the business and work plan required in advance of project construction.The Denali Commission will be responsible for monitoring compliance with the sustainability criteria and for enforcement of its terms,including any future transfer of operational responsibility for project assets. A "back up operator”means an organization such as an existing utility that meets sustainability standards in the judgment of the Denali Commission and that is willing and able to take responsibility for the operation and maintenance of the subject assets.The Commission generally considers certificated electric utilities in good standing that have a customer base of at least 1,000 consumers to be sustainable.Before construction funds will be advanced,the original utility and a back up operator must agree in writing to cooperate on the transfer of project assets if required by the Denali Commission in the future due to non-compliance with these sustainability criteria.With the original back-up operator's consent,other back-up operators may be considered in the future.Such cooperation must include payment from the original utility to cover the incremental costs incurred by the back up operator to operate and maintain the assets.The Denali Commission will assist in preparing the transfer cooperation agreements. 10. Rural Alaska Electric Utilities Criteria for Sustainability April 20,2001 Page 2 of 2 The utility is operating in substantial conformance with a business and work plan under which adequate revenue will be available to cover all expenses,including renewal and replacement of plant to be financed by debt,equity,or a combination of debt and equity,plus a margin that is consistent with its long range financial needs.A depreciation schedule will be established and depreciation will be charged at a level sufficient to fund the projected costs of major repairs,renovations,renewals,and replacement of major plant components. The utility system is in compliance with the laws and regulations that govern its operation. The utility provides for adequate preventive and scheduled maintenance of its facilities,and keeps its facilities in good condition and repair. The utility arranges for annual financial audits that are conducted by qualified,independent auditors and which consistently find no significant financial irregularities. The utility is not in default with respect to any of its financial obligations,including debts, taxes,or other established liabilities. Rates are based on cost of service such that no customer class subsidizes another to a significant extent and the risks of possible loss of large consumers are minimized by power sales agreements that protect the economics of a utility's operations. The utility maintains adequate business insurance covering all significant risks.Self- insurance will]be allowed for specific risks provided the utility can clearly demonstrate how adequate funds would be made available in a timely fashion to satisfy possible claims. The utility has a credible business and work plan that is updated no less frequently than once every five years and that includes provision for adequate preventive and scheduled maintenance,a ten year capital replacement and expansion plan,a ten year financial forecast, and a rate structure analysis. In the case of joint ventures,the utility has sufficient management control or other contractual safeguards with respect to the construction and operation of jointly owned facilities to ensure that the utility's interests are protected and the utility lender's credit risk is minimized. Where rates or investment decisions are subject to approval by regulatory authorities,there is reasonable expectation that such approvals regarding development of the project will be forthcoming. |ALASKA INDUSTRIAL DEVELOPMENT*AND EXPORT AUTHORITY |,ALASKAqm_=ENERGY AUTHORITY 813 WEST NORTHERN LIGHTS BLVD.©ANCHORAGE,ALASKA 99503 ©907/269-3000 ©FAX 907/269-3044 TOLL FREE (ALASKA ONLY)888 /300-8534 April 2,2001 Al Ewing,Chief of Staff Denali Commission 510''L'Street,Suite 410 Anchorage,AK 99501 Subject:Request for Funds Cost Increases,Sustainability,and Project Solicitation Dear Mr.Ewing: The Alaska Energy Authority (AEA)requests funds in the amount of $6,600,000 broken down as follows: 1.$900,000 due to cost increases for the Kotlik and Tuluksak powerplant 'projects. 2.$600,000 for consulting services to assist communities in preparing detailed management,maintenance,and operations plans for each tank farm and powerplant project constructed by AEA with Denali Commission funds. 3.$100,000 for consulting services in connection with our proposed solicitation of energy cost reduction projects. 4.$5,000,000 to finance energy cost reduction projects selected pursuant to our proposed solicitation process.(The amount requested for this purpose could vary within a wide range -we understand that between $3.0 million and $5.0 million may be available for this purpose.) Kotlik and Tuluksak Powerplant Projects °An additional $600,000 is requested for the powerplant replacement project in Kotlik.The cost estimate has increased from $1.2 million to $1.8 million due to the need to construct a new powerhouse structure as part of the project. Al Ewing,Chief of Staff April 2,2001 Page 2 The preliminary design and layout for the powerhouse upgrade were based on using the existing powerhouse structure.The existing building was originally designed as a storage warehouse and work shop.After inspecting the building it was determined that the foundation and building would not adequately support the weight of the new larger sized generator equipment needed to supply power to the community.At that point it was determined that a new building is needed. An additional $300,000 is requested for the powerplant replacement project in Tuluksak.The cost estimate has increased from $1.2 million to $1.5 million due to a change in the project site. The community of Tuluksak has recently chosen to move the original site location for the new powerhouse to accommodate their comprehensive plan and future expansion of the community.The new site location will be closer to the new water treatment plant and new bulk fuel storage facility. This move will accommodate a heat recovery system to the water treatment plant.Locating the powerhouse at the community's preferred site will require additional funds for site development,which includes a road extension to the site and build up of the new powerhouse pad. Management,Maintenance,&Operations Plans for Commission Projects The Denali Commission and AIDEA/AEA are continuing to work on effective and practical approaches to ensure that each new village infrastructure project is .properly maintained and operated throughout its expected service life.While work continues on development of appropriate standards and long-term enforcement mechanisms,all parties agree that a detailed project management plan should be prepared for each new project in close consultation with the project owner(s),who should then be required to commit to its implementation as a condition for receipt of the project grant. While it requires minimal time and effort to prepare and send out a sample management plan,it is another matter to tailor a detailed plan to each specific project and to ensure that each project participant fully understands its provisions and commits to its implementation.For tank farm projects,the management plan will not only clarify O&M procedures and identify which party is responsible for which task,it will establish an annual budget and identify the required sources of revenue.AIDEAJAEA staff have made efforts to develop such budgets and revenue sources in conjunction with prior tank farm consolidation projects and can attest to the difficulty in getting all of the tank farm participants to agree to an approved O&M budget that,in most cases,substantially exceeds what they are used to paying.Extensive interaction with the project participants -in person,in writing,and by phone -is likely to be necessary in most cases for the plan to be successfully launched. x Al Ewing,Chief of Staff April 2,2001 Page 3 AIDEA/AEA does not have staff resources available to take on a task of this magnitude.Although more experience will be needed to estimate with any precision what resources will be required to do this,we will clearly need significant help and we therefore propose to retain contractors for this purpose. As a starting point,our initial estimate is that detailed management plans can be developed and ushered through an owner consultation and approval process at an average contract cost of $15,000 per plan. Attachment #1 contains a list of the following 40 projects: °5 projects (4 tank farms and 1 powerplant)for which additional funds have been approved under grant amendent #4 between AEA and the Denali Commission; 20 tank farm projects for which preliminary design funds were approved in grant amendment #3;and 15 tank farm projects for which preliminary.designs were completed prior to Amendment #3. Our request for funds at this time is therefore: 40 projects X $15,000 each =$600,000 Solicitation of Energy Cost Reduction Projects -Consulting Services AEA and the Denali Commission previously agreed that the energy plan scope ofworkwillincludealistofspecific"alternative energy”projects that are ready to befundedandbuiltinthenearterm.Upon further discussion with Commission staff,it was agreed that the primary reason to pursue alternative energy is to reduce energy costs,and that any project that will reduce energy costs should be identified and considered for funding.AEA has therefore developed a Request for Proposals to be issued statewide for energy cost reduction projects and is prepared to issue the RFP as soon as concurrence on this approach is obtained from the Commission.A copy of the proposed RFP is attached. A cover letter for the RFP would be sent to all electric utilities and local governments in Alaska and is proposed to include at least the following points: .The amount of funding available in FY2001 for proposals submitted in response to this solicitation is $5.0 million. Preference will be given to distressed communities and to those with existing electric utility systems in poor condition. Ai Ewing,Chief of Staff April 2,2001 Page 4 °The Denali Commission expects to have additional funds available in the future and wishes to pull together a statewide assessment of needed energy infrastructure which will help form the basis for future congressional funding requests.Such infrastructure is not limited to energy cost reduction projects but is intended to include any improvements that will provide benefits to Alaskans within the energy sector.Electric utilities and local governments who do not expect funding in this initial round,given the preferences and funding levels noted above, will be asked to submit letter proposals that define and justify their requests for future funding consideration. Personnel and funding resources will be needed to carry out this RFP process. Areas of concern include: °Depending on the number of proposals received,AEA may not have sufficient resources to conduct the necessary proposal evaluations.As described in the RFP,the evaluation criteria are detailed and extensive. °In the interests of sustainability,the draft RFP includes a requirement that electric utilities selected for funding develop detailed management plans that help assure the long term viability not only of the project to be funded but also of the utility itself.(See "Sustainability"section of RFP on page 3.)The RFP states that,upon request,AEA will help utilities develop these management plans.Additional personnel and funding resources will be needed by AEA to provide this assistance. Many proposals could be received -past experience suggests that utilities like Alaska Power &Telephone and AVEC could generate as many as 10 proposalsofvaryingsizesforthemselvesalone.Assuming a total of 25 proposals arereceived,which is admittedly little more than a guess,$50,000 in contractual expense could be anticipated to conduct the evaluations. If 6 proposals are accepted,half of which require assistance from AEA in the development of detailed management plans,an additional $50,000 could be anticipated for this purpose. Based on the foregoing estimates,AEA requests $100,000 from the Commission for consulting services in connection with the proposed project solicitation. Solicitation of Energy Cost Reduction Projects -Project Financing $5,000,000 is requested at this time to be issued as grants and loans for projects selected under our proposed "energy cost reduction”project RFP.Based on z Al Ewing,Chief of Staff April 2,2001 Page 5 discussions with Denali Commission staff,we understand that between $3.0 million and $5.0 million may be available for this purpose. Sincerely, Louiows, David E.Germer Deputy Director--Business Development and Rural Energy Attachments as stated. cc:Robert G.Poe,Jr.,Executive Director Charlie Walls,Denali Commission Al Ewing,Chief of Staff April 2,2001 Page 6 bee:Amy McCollum Chris Mello Bruce Tiedeman Kris Noonan David Lockard ATTACHMENT 1 Amendment #4 Projects Community Kotlik Toksook Bay Kongiganak Nikolai Tuluksak Project Type Bulk Fuel Bulk Fuel Bulk Fuel Bulk Fuel Power Generation Amendment #3 Projects Community Nelson Lagoon 'Saint George Akhiok Chenega Bay Kokhanok Koyukuk Lime Village Sand Point Clarks Point Kasigluk Egegik Akiachak Sleetmute Akutan Platinum Igiugig Newhalen Port Heiden Deering Sheldon Point Project Type and Status Bulk Fuel -35%Design Bulk Fuel -35%Design Bulk Fuel -35%Design Bulk Fuel -35%Design Bulk Fuel -35%Design Bulk Fuel 35%Design © Bulk Fuel -35%Design Bulk Fuel -35%Design Bulk Fuel -35%Design Bulk Fuel -35%Design Bulk Fuel -35%Design Bulk Fuel -35%Design Bulk Fuel -35%Design Bulk Fuel -35%Design Bulk Fuel -35%Design Bulk Fuel -35%Design Bulk Fuel -35%Design Bulk Fuel -35%Design Bulk Fuel -35%Design Bulk Fuel -35%Design ATTACHMENT 1 Projects Prior to Amendment #3 Community Atka Aleknagik. Larsen Bay Red Devil Crooked Creek Chuathbaluk Takotna Diomede Rampart Port Protection Point Baker Hoonah Birch Creek Chalkyitsik Venetie Project Type and Status Bulk Fuel -35%Design Bulk Fuel -35%Design Bulk Fuel -35%Design Bulk Fuel -35%Design Bulk Fuel -35%Design Bulk Fuel -35%Design Bulk Fuel -35%Design Bulk Fuel -35%Design Bulk Fuel -35%Design Bulk Fuel -35%Design Bulk Fuel -35%Design Bulk Fuel -35%Design Bulk Fuel -35%Design Bulk Fuel -35%Design Bulk Fuel -35%Design DRAFT ATTACHMENT 2 ALASKA ENERGY COST REDUCTION PROJECTS GRANTI/LOAN APPLICATION INSTRUCTIONS APRIL 2001 The Denali Commission (the "Commission')intends to finance energy cost reduction projects that will benefit energy consumers in Alaska.Such financing will consist of a combination of grants and loans.The Alaska Energy Authority ("AEA”)is acting as agent for the Commission in soliciting and evaluating proposals to reduce energy costs,and in administering whatever grants and loans may be awarded.This packet includes complete instructions for sponsors of such projects to apply for financing.Please note the following: Schedule A.Proposals in response to this solicitation must be received by AEA no later than 4:00 PM,June 15,2001. Applicants must demonstrate a clear intention and capability to begin project construction or implementation by June 1,2002. Eligible Projects A.Any project or program that will reduce energy costs for Alaska consumers is eligible,taking into consideration the anticipated terms of project or program financing.Examples of eligible projects or programs include but are not limited to:' °Installation of more efficient diesel generators. .Construction of hydroelectric projects,interties,wind systems,or other energy alternatives. °Implementation of energy conservation measures. The project must rely on commercially proven technology,equipment,and operating procedures. The Denali Commission has made $XX million available in FY2001 to finance proposals submitted in response to this solicitation and anticipates financing more than one proposal within this overall funding limit.The Commission may allocate additional funds for energy cost reduction projects in the future.Proposals submitted in response to this solicitation but not financed in this initial round will be reconsidered at a later time if the Commission allocates additional funds for this purpose. DRAET ATTACHMENT 2 There is no limit to the amount of financing that may be requested or the number of proposals that a single applicant may submit.However, applicants should be aware not only of the funding limitations described above but also that the risk of insufficient funds increases with the size of the project and its financing requirements.Finally,the Commission reserves the right to award less than the full amount of financing that is now available if it determines that a lesser amount is warranted.The Commission expects this to be a continuing financing program.Projects not funded in this round may be funded in subsequent years if congressional appropriations are made for this purpose. Eligible Applicants A.For projects that produce or transmit electricity,all power must be intended for use by,or sale to,a utility that is certificated to provide electrical service to the public.Eligible applicants for these projects are: °.Certificated electric utilities. °Independent power producers who have obtained for themselves and their project the formal endorsement of the purchasing utility's governing board. For "waste heat”projects (i.e.projects that recover and use excess heatexpelledfromdieselgeneratingplants),eligible applicants are: °Certificated electric utilities. °Local governments that have obtained the formal endorsement of the electric utility that will supply the waste heat from its power plant. For projects to enhance end-use conservation of electricity,space heat,or water heat: °Certificated electric utilities. °State agencies or local governments. Except for independent power producers and investor owned utilities,private entities are not eligible applicants for financing under this solicitation.However, private entities are encouraged to work with local governments and electric utilities in developing energy cost reduction concepts,proposals,and financing applications.Private entities may be key participants in the preparation of proposals and in project development,working in concert with the applicant. D.Each applicant must be in good standing with respect to its credit and federal tax obligations. -2- DRAFT ATTACHMENT 2 Sustainability The applicant must justify a high level of confidence that the project will be sustainable,meaning that: A.The project will be properly operated,maintained,and repaired throughout its expected life; B.The owner of the project will generate sufficient operating revenues over the project's expected life to meet all of the owner's costs and obligations, including but not limited to those incurred in connection with the project; C.The owner will be financially capable of replacing the project when its useful life is over,such replacement to be financed with equity,debt,ora combination of equity and debt. Applications must include evidence drawn from the applicant's past performance, existing status,and future plans that these sustainability conditions are met. After AEA selects applications for project financing but before the actual release of project construction funds,more detailed management plans will be required that will commit prospective project owners to practices and standards that are necessary for long-term sustainability.Upon request,AEA or its contractors will assist prospective project owners in preparing these management plans. Evaluation Criteria A.All threshold criteria noted above must be met,including: °Clear intent and capability to begin construction or implementation by June 1,2002. °Reliance on commercially proven technology,equipment,and operating procedures. °High level of assurance that the applicant,either alone or in concert with its partners,has the administrative and managerial capability to successfully construct or implement the project. .High level of assurance that the project will be sustainable. .Applicant in good standing with respect to credit and federal tax obligations. B.The project must be sufficiently well defined,and the application must be sufficiently documented,to enable AEA to determine the following: °The project is technically feasible. -3- DRAFT ATTACHMENT 2 °There are no major barriers to project development based on land ownership,permitting,environmental or geotechnical considerations. °Both the cost estimate and schedule are realistic. °Expected project impacts,including costs and savings,have been reasonably well estimated. The application must include satisfactory responses to each of the questions and information requirements defined in these application instructions.During the application review process,AEA may ask grant applicants for additional information related to minor omissions or Clarifications.However,AEA will reject applications as incomplete if a substantial body of needed information is lacking in the application as submitted. For proposals that pass the criteria defined above,AEA will prepare a conventional economic feasibility analysis based on costs and savings projected by the applicant.AEA may adjust these projected costs and savings at its own discretion.In the absence of subsidy,a benefit-cost ratio will be estimated for each proposal where "benefits”are equal to the present value of expected future savings and "costs”are equal to the expected capital investment.Proposals will be ranked in order of their estimated benefit-cost ratios. Projections will assume constant "real”fuel prices -that is,the delivered price of fuel will not change from its current level except to match inflation. AEA will use a 3.0%real discount rate to develop the benefit/cost ratios. Following step 'D'above,AEA will adjust the ranking of proposals based on two measures of applicant need: .Average income level in the affected community (or communities). This will be based on information developed by the Denali Commission. .For electric utility projects,the existing condition of electric utility facilities. Financing Structure A.For projects other than residential end-use conservation,AEA will conduct a financial feasibility analysis to determine the maximum level of debt financing that the project can support without creating negative impacts on consumer costs during the project's initial years of operation. -4- DRAFT ATTACHMENT 2 Project financing to be offered under this solicitation will consist of the following two components: °The loan component will be half of the maximum debt load calculated in step 'A'above. .The grant component will be equal to the remainder of project financing requirements. The one exception to this project financing structure will be residential end-use conservation,for which the Commission will consider 100% grants.The reason for this exception is that the administrative costs required to issue and service relatively small amounts of credit for many individual households are likely to be high. DRAET ATTACHMENT 2 DETAILED APPLICATION INSTRUCTIONS PLEASE RESPOND ON SEPARATE PAPER TO EACH OF THE QUESTIONS 'AND INFORMATION REQUIREMENTS LISTED BELOW. 1.Information about the applicant: A.Name B.Mailing Address C.Telephone Number D.Fax Number 2.If the applicant is an electric utility,enclose a copy of your Certificate of Public Convenience and Necessity issued by the Regulatory CommissionofAlaska. 3.Information about the individual representing the applicant for purposes of this grant/loan application: A.Name B.Title C.Mailing address,telephone and fax number if different from above. D.E-mail address if available. 4.Enclose a copy of the resolution or other formal action taken by the applicant's governing body that: A.Authorizes this application for project financing;B.Authorizes the individual-named above to represent the applicant for purposes of this application; C.-States that the applicant is in good standing with respect to its -existing credit and federal tax obligations. In addition,provide any documentation necessary to demonstrate that theapplicanteligibilityrequirements,specifi ed on page 2 of this applicationpacket,have been met. 5.Total project financing requested in this application.If additional funds from another financing source have been,or will be,committed to this project,state the total project financing requirement and describe all anticipated sources of funds.For each additional funding source,statewhethertheanticipatedamounthasbeenapprovedor,if not,what remains to be done to obtain approval. 6.Narrative description of the project,including clear evidence that it relies on commercially proven technology,equipment,and operating procedures. 14. 15. 16. 16. DRAFT ATTACHMENT2 Describe how project design and construction or implementation will be managed,including the names and qualifications of individuals and organizations responsible for project management and financial administration. Enclose a map showing the project location. Who owns the project land?If owned by a party other than the applicant, discuss the expected process of obtaining site control and issues that may be encountered. List any major permits that will be required. Describe any significant environmental issues that will be encountered. Describe any significant geotechnical issues that will be encountered. State the total project cost estimate and associated budget broken down by major task or cost component.Enclose project drawings and other documentation that will enable AEA to judge whether the project cost estimate is reasonable. Provide a project schedule including the anticipated start date and completion date for project construction or implementation,and expected dates of other major project milestones. Describe how the project will be operated and maintained,and estimate the project's annual O&M costs.Provide evidence from past performance, existing status,and future plans that the following additional sustainabilityconditionsaremet: The owner of the project will generate sufficient operating revenuesovertheproject's expected life to meet all of the owner's costs and obligations,including but not limited to those incurred in connection with the project; °The owner will be financially capable of replacing the project when its useful life is over,such replacement to be financed with equity, debt,or a combination of equity and debt. Provide a projection of all expected costs and savings anticipated on an annual basis as a result of the project over its expected lifetime.Explain and document the basis for these projections. Enclose financial statements of the applicant for the most recent three years,including balance sheets and profit-loss statements.Attach a copy of any related management reports.In addition,list credit references of the applicant including name,address,and phane number. -7- 813 WEST NORTHERN LIGHTS BLVD.©ANCHORAGE,ALASKA 99503 ©907/269-3000 ¢FAX 907/269-3044 TOLL FREE (ALASKA ONLY)888 /300-8534 ALASKA INDUSTRIAL DEVELOPMENT AND EXPORT AUTHORITY =A @@™ENERGY AUTHORITY February 26,2001 Mr.Jeff Staser 14 " Co-Chair Denali Commission ok 510 "L"Street,Suite 410 \o>Anchorage Alaska 99501 \Jerr 2DearCompisiorerStaserf - |am writing in response to Amendment Four of the grant agreement for upgrading the energy. infrastructure in Rural Alaska between the Denali Commission (DC)and the Alaska Industrial Development and Export Authority and the Alaska Energy Authority (AIDEA/AEA),and the process you have taken to impose this amendment on the Rural Energy Group (REG)bulk fuel facility and power system upgrade program.As you know,Amendment Four,as currently written,requires significant sustainability criteria to be in place prior to funding these rural energy projects.My efforts,and those of AIDEA/AEA staff,to reach a compromise with you privately have yielded no reasonable consideration.Therefore,|am compelled to formalize in writing AIDEA/AEA's concerns regarding the DC staffs approach to implementing a "sustainability”process. First,let me say that AIDEA/AEA is very pleased that funding was approved by the DC Commissioners for all five communities included in Amendment Four,and,in particular,for the four Indian Community Development Block Grant (ICDBG)projects we have been working on for more than a year.AIDEA/AEA looks forward to providing these communities with significantly improved bulk fuel storage facilities.Unfortunately,without some reasonable compromise on the new sustainability criteria imposed on these five projects,it is very doubtful that they can be completed this year. As you probably know,AIDEA/AEA has worked directly with these communities for some time establishing community agreements and designing the anticipated facilities.Ve have been dotting the "i's”and crossing the "t's.”Therefore,we were very surprised and concerned to see the new section added to Amendment Four requiring significant sustainability criteria for these communities before funding would be made available.AIDEA/AEA and the communities thought the deal was done. |want to strongly emphasize that AIDEA/AEA and the REG support the need to significantly improve the sustainability of capital investment in rural Alaska,particularly in the areas of bulk Mr.Jeff Staser - February 26,2001 Page 2 fuel storage and energy production.Our primary concern is that you added these sustainability criteria to Amendment Four unilaterally.This approach completely ignores a number of important factors: AIDEA/AEA has been working with these communities for some time and already have grant and management agreements in place.This action would amount to a major change in the rules in the middle of the game,and it would do so at a critical stage of project development -right before construction season.Under the current version of Amendment Four it is doubtful whether any of these projects can be constructed this year. As currently proposed,AIDEA/AEA would determine if local communities meet the sustainability standards and would deny funding to replace decaying infrastructure in needy villages if,in our opinion,they don't measure up.These would be serious and controversial decisions -for the idea to work,the standards must be widely accepted as appropriate, necessary,and realistic,and the organization enforcing the standards must have both credible authority and the recognized competence to do so.The proposed standards should be circulated for comment to the DC Commissioners,to rural electric utilities,to the Regulatory Commission of Alaska (RCA),and to other involved parties.Several test cases should be conducted to uncover problems that may arise in their application.The reasonableness and legitimacy of the standards would be greatly enhanced if they were first subjected to a public input and testing process. The sustainability concept advanced by DC staff not only requires AIDEA/AEA to make an initial determination on local compliance with extensive and detailed standards;it requires 'us to continue enforcing compliance throughout the life of the asset.AIDEA/AEA does not have a staff of utility operations experts or management consultants,nor do we have funds to retain such expertise on long term contract.Two other State agencies that have been established to carry out such functions are: A.The Regulatory Commission of Alaska,which is squarely in the business of determining whether specific utility organizations or firms are fit to serve their service territory.Since sustainability compliance is likely to significantly increase the cost of the Power Cost Equalization program,it is critical that the RCA be involved in this process. B.The Rural Utility Business Advisor program (RUBA)in the Department of Community and Economic Development,which was established with the core mission of helping rural utilities properly manage their affairs in accordance with sound business principles. AIDEA/AEA has taken on many functions with respect to rural energy but,to date,utility management consulting is not one of them.AIDEA/AEA staff expertise is consistent with our current design and construction functions. Because of the timing of your sustainability approach,AIDEA/AEA has not been allowed even minimal opportunity to implement a program that could help communities cope withtheserequirements.Our staff recently met with DC staff to consider how we can realistically advance the cause of sustainability in the near term for bulk fuel storage Mr.Jeff Staser February 26,2001 Page 3 projects and electric utility projects.Our discussions focussed on the easier of the two - bulk fuel storage facilities -,which are much Jess complicated to manage and maintain.We reviewed with DC staff draft management plans that AIDEA/AEA had previously prepared for some of the bulk fuel facilities and agreed that a significant amount of time and money is needed to: A.develop appropriate content in the management plan for each new facility, B.gain formal acceptance of the plan by the facility owner and participants, C.monitor compliance with the plan,and D.determine what to do if the plan isn't followed. We further agreed to consider how much it would cost to create a unit within AIDEA/AEA,or possibly within RUBA,to take on these tasks with the idea of bringing that estimate to the DC for possible funding.We believed that we were heading down a manageable path in concert with DC staff,and we are prepared to continue to do so. e The Amendment Four approach proposed by DC staff ignores the sustainability portion of the rural energy planning effort now underway at ISER,for which both the DC and AIDEA/AEA are cooperating sponsors.These results,which represent a_broadly considered approach to the issue of rural utility sustainability,are expected to appear in a public comment draft to be released in March 2001. e One of the broader questions by Amendment Four is whether sustainability standards should apply only to those communities with projects funded by the DC.If monitoring and enforcement of such standards is tied to staff and other resources supported by DC funds, what will happen when DC funding runs out?The mechanism to create and enforce sustainability standards needs to be sustainable. e My final point on this is that the DC is a partnership between the Federal government and the State of Alaska.Your Amendment Four approach is hardly indicative of a good faith partnership. We find this unilateral step particularly frustrating in light of the many significant efforts the AIDEA/AEA and the REG have made over the last few months to resolve many of the problems that existed between the DC and AIDEA/AEA.When you and|first met to discuss these issues,during the first week of my tenure with AIDEA/AEA,you described your particular frustration in three areas: A.timely completion of projects, B.REG's capacity to take on more projects as funding from Washington,D.C.to the DenaliCommissionwasincreasingsignificantly,and Mr.Jeff Staser February 26,2001 Page 4 C.completion of a rational energy plan for rural Alaska. AIDEA/AEA has responded in very tangible ways to each of these concerns.First,we have implemented a considerably improved model to deliver significantly more successful projects in the upcoming construction season.We have added key project management staff and engineering staff at REG.And,we are bringing on up to six construction management firms to assist in project delivery,both during the upcoming and future construction seasons. The proposals from these construction management firms are at this moment being evaluated. As an additional benefit,we have asked these firms to provide skill development training programs so that we can begin to develop significantly more advanced construction skills like heavy equipment operators,welders,pipe fitters,painters,and sandblasters,in the communities and regions where we are building projects.This approach goes a long way towards helping the DC merge two of its key areas of focus:infrastructure development in Rural Alaska,and skill development among rural residents. These changes represent an important departure from the "hand-holding”approach that REG has traditionally taken in completing projects in Rural Alaska.We are confident these will make a big difference in our ability to complete projects on time and within budget.And,we expect these changes to significantly expand our capacity to complete a much larger number of projects. With respect to completion of a rational energy plan for rural Alaska,we have now completed two key elements to Phase 2 of the Rural Energy Plan,the screening report,and the rural community energy generation facility assessment.This recent assessment of every rural community (171 communities)in Alaska is the first time this has been done in Alaska's history. It is also the most current data that has ever been available to assess the current power generation picture in rural Alaska.This data will be available in a relational database by early March of this year.The screening report has met with very good response from members of the public reviewing the draft.It reaches logical conclusions based on sound analysis and common sense cost comparisons to realistic power generation alternatives. Additionally,to further advance the results from the above two elements of Phase 2,we will be proposing an innovative approach to further partner with the private sector to seek their practical ideas on ways to reduce the cost of generation in rural Alaska.This approach will be presented at the upcoming Infrastructure Sub-Committee meeting of the DC. In closing,|would like to emphasize AIDEA/AEA's support for the good work the DCis trying to accomplish and our support for long range success in project sustainability in rural Alaska.Our disagreement is not about the issue of sustainability,but about the process you have taken to force these five rural communities to meet the sustainability criteria you have included in Amendment Four.Criteria such as these have very significant impacts with regards to a number of rural energy issues.We believe that if the DC,AIDEA/AEA,the RCA,RUBA and other concerned agencies take time now,to implement criteria which has a good chance of being implemented successfully,all will benefit.AIDEA/AEA has been working hard to hold up Mr.Jeff Staser | - February 26,2001 Page 5 our side of the DC partnership,we would appreciate the same consideration and spirit of cooperation as we work together to address this very important rural energy issue. Sincerely, Robert Poe Executive Director RGP:bif H:\ALLibfugiestad\Rurai Energy Group\Sustainability 2-26-01 .doc Cc:Denali Commission Commissioners AIDEA/AEA Board Members RCA Commissioners Senator Drue Pearce Representative Ken Lancaster Representative Ethan Berkowitz Ron Clarke,Special Staff Assistant,Office of the Governor Annalee McConnell,Director,Office of Management &Budget Karen Perdue,Commissioner,Department of Health &Social Services Meera Kohler,President &CEO,AVEC Al Ewing,Denali Commission Eric Yould,Executive Director,ARECA Criteria for Sustainable Rural Alaska Public Utility Systems January 31,2001 The criteria for determining a sustainable public utility in rural Alaska includes: I.The economics of the utility's operations and service area are such that consumers can reasonably be expected to pay the proposed rates required to cover all expenses,including the renewal and replacement of plant. The experience and performance of the system's management has been acceptable as evidenced by consistently providing adequate and reliable utility service that meets or exceeds industry and regulatory standards. The utility has a stable maintenance force that has demonstrated the ability to conduct preventative and scheduled maintenance,and to troubleshoot,repair,and replace system components. The utility has implemented adequate financial and management controls and there are and have been no significant financial or other irregularities. The utility's projected capitalization,measured by its equity as a percentage of total assets,is adequate to enable the utility to meet its financial needs and to provide service consistent with industry and regulatory standards. Risks of possible loss of Jarge consumers will not substantially impair the economics of a utility's operations. The utility maintains adequate business insurance covering all significant risks. The utility has credible long range system plans that includes projections of service requirements,rates,revenues,expenses,margins and other factors for the present system and proposed additions that are based on reasonable assumptions and adequate supporting data and analysis,including analysis of a range of assumptions for the significant variables. In the case of joint ventures,the utility has sufficient management control or other contractual safeguards with respect to the construction and operation of jointly owned facilities to ensure that the utility's interests are protected and the utility lender's credit risk is minimized. 10.Where rates or investment decisions are subject to approval by state regulatory authorities,there is reasonable expectation that such approvals will be forthcoming to maintain utility feasibility. oo .to DENALI COMMISSION 510 'L'Street,Suite 410 Anchorage,Alaska 99501 (907)271-1414 Fax (907)271-1415 Toll Free (888)480-4321 www.denali.gov Alaska Industrial Development and Export Authority 813 W.Northern Lights Anchorage,AK 99503 February 27,2001 yDearMr.poe Kya, Your February 26 letter underscores the real challenge to achieving our goal of sustainable power projects in rural Alaska:teamwork. First,let me assure you that no one ignores the planning factors you listed,or your concern about rushing things.I need to share some facts of which you may not be aware,in the hope they restore your confidence in the team. In the absence of alternative sustainability standards,federal standards must be applied to the federal financial assistance awards we negotiate.I know you agree in principle that the proposed standards are workable and necessary,and will be part of all future work and/or requests for proposals.After all,they are neither new nor untested.I know you also share our concern that the traditional approach does not adequately guarantee your projects are sustainable.But your immediate problems appear to be centered on projects proposed for this,our third construction season.Let's work those out,together. On January 18 we formally proposed specific criteria for the $7,000,000 we offered to the Alaska Industrial and Export Authority (AIDEA)through Amendment Four to manage construction of, not to operate,5 projects.We shared those criteria with you in November 2000,after reviewing the results of two prior years of working through the Alaska Energy Authority.Essentially the standards are captured on page 6 of your own December 2000 newsletter citing the elements of any good business plan. On the same day we proposed the same standards attached to the $18,000,000 we offered to a regulated public utility supporting 52 villages in the most distressed region of the State.Our criteria were not an issue;they even offered zero percent over-head and a 10%cost share match. Today they are well on their way to constructing 24 projects within their service area,at 22 : different communities specifically recommended by AIDEA. AIDEA is different,and we anticipate that accommodations must be made;however we all agree, I believe,that sustainability cannot be compromised. 4 - Since its inception,this has been the distinguishing feature of our financial awards,consistent with Congressional intent and the Denali Commission Act of 1998.If the application of that principle causes you any problems now,just call and we will work them out.If all this came as a surprise to you,I apologize.All the sustainability standards require are basic business practices that are the common denominator of successful power utilities throughout Alaska.And there are numerous avenues for these five communities to meet the criteria -perhaps we can help lay those out for your staff.There simply are no insurmountable problems in front of us,and I believe the hardest work is already done. I look forward to continuing to work through these growing pains with you and your staff. Jeffrey B.StakerFederalCo/chbir